gene arensberg reports that the bullion banks are trying to halt the advance in precious metals. he has a point, and as much as i hate to say "this time it's different" in fact the banks are taking on foreign powers who have even more money than they do, instead of the usual hedge funds, so this time it may really be different:

The largest of the largest gold and silver futures traders in New York significantly increased their collective net short positioning going into the U.S. Thanksgiving week, a week of lighter than usual liquidity.

COMEX commercial traders boosted their net short positioning for gold by a large 24,558 contracts as of Tuesday, November 24, according to data released by the Commodities Futures Trading Commission (CFTC) Monday, November 30.

At 306,104 contracts net short, the net short position held by traders the CFTC classes as “commercial” for gold is at a new nominal record.

On the surface that suggests that the largest gold hedgers and short sellers are once again taking a “goal line stand,” or at least employing a “prevent defense” as gold approached the $1,170 level. Indeed we have to note material and determined “opposition” to $1,200 gold and $19 silver.

Interestingly, as the COMEX commercials were stepping up their gold short positions, their colleagues, commercial traders on the Intercontinental Exchange or ICE, were apparently heading in the opposite direction with their U.S. dollar positioning. Despite additional weakness in the greenback, the “ICECOMS” ended the reporting week net short the buck for the first time in months.

http://www.stockhouse.com/Columnists/2009/Dec/2/Got-Gold-Report--COMEX-Commercials-position-for-go