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Monday, Aug 5
Gold miners return to hedging, FT reports
- Some gold miners (GDX, GDXJ) have returned to hedging to protect themselves against further drops in the price of the metal, several senior precious metals bankers tell FT.
- Although major gold miners have yet to return to the long-shunned practice, small and medium-sized gold companies are said to have rushed to hedge in recent months.
- The shift in philosophy reflects mining executives’ fear that the past month’s rebound in gold prices may be short-lived, as well as the recognition that more falls in prices could push them into losses.