As gold believers and non-believers alike wonder where the yellow metal might find a bottom, there’s an important guide to the level of faith that continues to exist in the industry and what might be the real sign of gold bugs’ capitulation: the miners haven’t starting hedging again. Well, not yet.
Part of the confluence of events that sent gold bubbling was the producers pretty much en masse closing out their hedge books, effectively betting on the gold price rising.
There was a self-fulfilling element in that as the end of hedging took a restraint off the price.
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