Gold Price Support of Dehedging "could falter" in H2 2007
Source: London (Platts) (8/2/07)
A more than likely decline in gold dehedging in the escond half of 2007
-- whether through maturing contracts or buybacks -- means price support lent in Q2 by dehedging "could consequently falter," according to Edel Tully, head of precious metals research at Mitsui Global Precious Metals...
Much of the hedging and dehedging -- actual and planned -- of companies is already known to the market, and so the size of the hedgebook -- at 31.2 million oz at the end of Q2 -- is not news, conceded VM analyst Matthew Turner.
However, he told Platts, the market might not have quite taken account of the likely pace of dehedging deceleration in H2 2007. With a full-year forecast for net dehedging of 11 million to 13 million oz, and 9.3 million oz already dehedged in H1, he stressed that the pace must slow.