Gold & Precious Metals Weekly
Merrill Lynch
Date: July 9, 2007
De-hedging remains strong in 2Q '07
One of the driving factors for a higher gold price over the past six years has been a deluge of producer de-hedging by global gold producers ...
The pace of de-hedging has continued in 2Q '07... We believe that the continuation of producer de-hedging partially explains why gold has held up well (above $640/oz) during a period marked by seasonal weakness for fabrication buying...
Gold Markets - Delightful de-hedging
Last week, the gold price edged ahead 0.9% to $655.80/oz, on the back of a weaker US dollar and news of further producer de-hedging in the global gold sector...
As we noted on the front page, producer de-hedging has been an important driver for the robust gold prices seen ytd in 2007...
Looking ahead, we continue to believe that bullion will trade up the $700/oz level by early Fall on the back of renewed fabrication demand... Due to our bullish 2H '07 view for bullion, we see no reason to alter our forecast...
The above information has been redacted from the article as it originally appeared in Merrill Lynch’s Gold & Precious Metals Weekly July 9, 2007.
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