On surprisingly strong volume for the Friday after Thanksgiving, gold dropped to its lowest level in six years.  The return from the slow US holiday week has allowed gold to regain some lost ground though.  It held and formed a double bottom at $1,050 and has rallied two days in a row.  Despite the move higher, the yellow metal may have some difficult times ahead in the short term.  Short positions on the Comex are at record highs, gold had its biggest monthly loss in two and half years in November, and a Fed rate hike is likely this month.  The USD is also hovering around eight month highs versus the euro and with the ECB expected to announce further stimulus measures next week, the USD could strengthen even more heading into year end.  A positive for gold may be the fact that everyone is so completely bearish on it right now though.  In this type of environment, when speculative positioning is so weighted in one direction, a short covering rally could certainly catch traders off guard.