Gold COT - Growing signs of bullishness

Commitment of Traders (COT) shows growing signs of commercial being less short than the last 3 months which marks a possible bullish sentiment potentially coming into this market.

Discussion
There are three core issues when looking at gold, in my opinion:

1) Basel III, has implications for trading paper gold - the majority of traded gold to date and its effects are not well understood;
2) Mark-to-market of commodities against the US dollar including gold;
3) Input costs of mining new gold (Oil) noting that a majority of the gold traded is simply 'paper' gold or derivatives - even by gold miners themselves.

Notice that I have not made any commentary on inflation or deflation. There is no evidence from the perspective of the US market that either will be significant in the near to medium term, irrespective what the media and others promote.

Suggestion
Keep an eye of this, along with gold miners and ETFs.