Gold dehedging slows down; hedging likely over $420/oz

摘要

London-The continued slowdown in dehedging could mean that the gold industry is on the cusp of a new hedging policy, with an acceleration in hedging interest above $420/oz and a decline in hedging at prices below $370-380/oz, Jessica Cross, CEO of Virtual Metals, said last week. Figures presented at the launch of a new quarterly analysis The Hedge Book, carried out by Virtual Metals and Haliburton Mineral Services on behalf of Mitsui Global Precious Metals, suggested that the slowdown in dehedging seen over the last couple of quarters was likely to continue. "During-these five quarters (Q2 2002 to Q2 2003 inclusive), the decline totaled 24.6-mil oz, or a quarterly average of 4.9-mil oz, compared with the average for the last two quarters of 2.3-mil oz. We expect this slowdown to continue, particularly as it is anticipated that more juniors will join the ranks of those dipping a toe back into the hedging waters," Mitsui said.