POGWhat were witnessing on gold prices is likely a short squeeze. As the price goes up, more and more shorts try to cover their positions. However the rising price also causes those owning gold to become increasingly reluctant to sell. That vicious cycle is the ultimate danger of shorting. At least on a long position all you can lose is what you've invested. On a short position, there is no limit to your losses ... especially for those who purchased on margin. Another $100 rise and the ledges on high buildings might become very crowded.