The bullion banks, JPM, GS, BAC, MS and C, just to name some biggies, are reputed to be h e a v i l y short both gold futures and options and supposedly are very vulnerable to any tremors that may occur in the Au based derivatives if the PoG should break sharplly above current levels.
although i've heard this often, there are things that happen that make me question that sometimes. e.g. just recently a note from MS (i think) which advised clients to have a 5% position in gold in their portfolios. that could, of course, be a case of "the left hand not knowing what the right hand is doing". but still, its the nature of derivatives players to offload all the risk to someone else. isn't it at least plausible that they've done this? (heck, even a sizeable hedge in the HUI could do that, one would think; and those guys are masterful at manipulating stock prices).