H1 2007 Gold Dehedging Exceeds 300 mt, but Rate to Slow

Source: Platts.com  (9/13/07)

The first half of 2007 saw a 305 mt reduction in the delta-adjusted gold hedge book, to 1,064 mt, driven by book reductions at four gold producer majors, according to GFMS, in its Gold Survey 2007, published yesterday.

The first half of 2007 saw a 305 mt reduction in the delta-adjusted gold hedge book, to 1,064 mt, driven by book reductions at four gold producer majors, according to GFMS, in its Gold Survey 2007, published yesterday.

In nominal, not delta-adjusted, terms, the gold hedgebook fell to 1,161 mt...

Dehedging looks even more dramatic in a breakdown of the delta-adjusted hedge book into forward sales and options. The percentage of forward sales in the delta-adjusted hedge book -- 731 mt or 69% as of end-June -- has declined against the options component, but not because of expansion of options, which have remained broadly flat over the last 18 months, said GFMS.

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