Producers shrink gold hedge books

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Gold producers' hedge books will continue to shrink this year as prices hover at around 25-year highs, say analysts. "Given the rhetoric of most major gold producers, it's safe to assume that de-hedging will continue," says Bruce Alway, a senior analyst at Gold Fields Mineral Services (GFMS), a London-based precious metals research and consultancy firm.

GFMS believes that de-hedging may actually accelerate from 2005 levels, although not everyone is convinced. "As long as there are no indicat