Gold advanced today trading between $890.20 to $919.60 per oz amidst continuing worries about the global economy. Current spot price at the time of this writing has the bid at $915.30. Some are speculating the gold could see higher valuations. The U.S Commodities Futures Trading Commision has data showing more long positions than short positions for gold.

A rapid rise in gold prices could very well be in the offing for another reason. February is a Comex delivery month. This could be quite significant as many believe that the Comex price of gold is fraudulently fixed and should enough people take deliveries, the Comex Exchange may default on supplying deliveries. Should a default occur, those who are in the know about managed futures hint that the price of gold may skyrocket to new highs.

Another impetus for a rise in gold is the stimulus and bailouts we’ve had so far. With the recently passage of the $838 billion simulus bill, the United States has affirmed its commitment to spend its way out of this economic crisis. The increase in government debt in this unfolding crisis as ballooned to trillions of dollars. Should foreign governments decide to stop buying our debt, we could see a loss of confidence in the US dollar. Gold could be seen as a safe haven under such developments.

Many signs point to a long term rise in gold. Despite all these signs, we may also see a short-term decline in gold prices. The recent rise may have alternative investment management looking to take some profits.