RE: Up 7.2% and no comments?? Commodities like stocks, go up and down... few days or weeks of small gains, dosen't mean a reversal is going to continue.
Personally, I would never count high short positions on either side of the buy/sell position to mean anything other than what they are... except if the short positions are high and there is a squeeze because of "an unforeeable event" (like 9/11), then the short covering can cause a major rally.
Oddly enough, what I would have guessed to be a "real reason" for a gold panic to take place (9/11), didn't hardly seem to effect the market at all. This is why I think you could just as easily, (or possibly more easily), pick almost any other commodity and play it with much greater success than gold... even pork bellies!
I'd lay odds that the ONLY reason that anyone sticks with gold and gold companies is because the metal twinkles in the eye; unlike porkbellies, bean, or oats.