By Clara Denina
Gold mining companies expanded the global hedge book by a further 21 tonnes in the second quarter to the highest level in six years, an industry report showed on Friday.
Hedging, usually by selling future gold production forward, allows miners to lock in prices and guarantee returns for their output.
Gold prices rose around seven percent in the second quarter from the first three months of the year.
In their quarterly Global Hedge Book Analysis, Societe Generale and GFMS analysts at Thomson Reuters said the global hedge book total stood at 295 tonnes at the end of June, up 9 percent from the previous quarter and compared to 177 tonnes in the same 2015-period.
Australia and Canada-listed companies OZ Minerals and Atlantic Gold accounted for 29 percent of the global increase in forward sales, the report showed.
"Although the third quarter has so far seen sparse announcements of new hedging activity, we believe the uncertainty over higher prices in 2016 will elicit gold producers to join the hedging 'club'," the group said.