Record Gold Dehedging Set to Slow
Source: Mineweb.com (8/3/07)
Dehedging by global gold mining companies cut the global hedge book by a record 15% or 5.4 million ounces to only 31.2 million ounces in the second quarter of 2007.
This brings the "rate of dehedging" for the first half of the year to 9.3 million ounces, but a slowdown is expected in the second half as only 1.5 million hedged ounces is scheduled for delivery in this period, said the Mitsui Gold Hedging Report.
Dehedging gained momentum in the second quarter as US miner Newmont and Australian Lihir Gold closed out their entire hedge books of respectively 2 million ounces and 1.4 million ounces.