Gold Producer 3Q De-Hedging Dn 11% Vs 2Q To 2.03M Oz - GFMS

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SYDNEY (Dow Jones)--Gold producers buying back gold forward sales, or hedges,
slowed to 2.03 million troy ounces during the third quarter, a 11%reduction on-
quarter and the smallest quarterly cut to the global hedge book since late in
2006, metals consultancy GFMS said in a report jointly prepared with Societe
Generale, released Monday.


Over the last few years, gold producers have been steadily running down their
gold hedges, which serve to lock in the prices of future production, for more
exposure to rising gold prices. Producers buying back hedges has boosted gold
prices in the past.


At the end of the third quarter, the global hedge book stood at 16.92 million
ounces, or 526 metric tons, in delta-adjusted terms.


Major producers AngloGold Ashanti Ltd. (AU) and Barrick Gold Corp. (ABX.T)
recorded the largest buybacks during the quarter, generating 1.76 million ounces
between them.



-By Elisabeth Behrmann, Dow Jones Newswires; 61-2-8235-2965;
elisabeth.behrmann@dowjones.com