As I said on the gold forum, POG at $1,000 would spell disaster for the majors and the ripple effects would be huge on the wider market - like a fat kid bomb diving into a pool
If the boys at Merril really did short 4M oz, then they can easily close out positions over time to support gold from falling under a certain price point and short some if it starts to rally - they basically have it by the balls now :)
Market has only just made back its gains and regained confidence - they'll want to bask in it for a bit longer
