From one of the best and most accurate commentators I know, and I've been reading him for about 25-years...

"With gold-futures and silver-futures shorts just hitting their own records, it virtually guarantees a frenzy of short covering is nearing. Short covering feeds on itself, driving accelerating rallies that propel gold and silver (and therefore GLD and SLV) higher."

http://www.321gold.com/editorials/hamilton/hamilton060614.html

In other words, the precious metals short traders have boxed themselves in over the last year, and with their most recent failure to panic the PM markets outside the U.S., the result will soon appear as a short covering rally of epic proportions.

Then, too, as the broader markets are already overvalued by any number of measures, improvement in mines and miners may capture a lot of "escapees" from these other sectors, adding further pressure to stock and PM prices.

Like I said earlier, it's going to be an interesting summer.

VP