-->Commercial short panic today?
The commercials are holding a net short position of some 100,000 futures -- close to a record short position.

We may be on the cusp of a commercial short covering panic of monumental dimensions.

Keep in mind that the last time the commercials were forced into a short cover panic (1993) gold ran upward almost 60 dollars in almost a New York minute...and that was at a time when their net short position was much much smaller than it is today.

Remember: There is NO limit up rule in the gold spot market which means gold can rise hundreds of dollars in a single day. There is $75 limit up rule in the futures market, with the futures price adjusted each day to the new spot price.

The commercials (many of whom MUST have gold in order to operate their businesses) fully understand the no-limit up rule in the gold spot market and so when they scramble for gold, it is truly a sight to see.