Today’s 2%+ rally in gold comes after the latest Commitments of Traders Report (December 1st) from the CFTC shows that commercials have almost covered their entire short position in gold futures:
This is unprecedented given that commercials are almost always holding a substantial net short position. This essentially means that miners and bullion dealers have aggressively closed out hedge positions in recent weeks, in a sign that they do not see much risk of additional downside. Technically speaking the next level of resistance for gold comes in around the $1100 level which served as support in September and October.