Gold price vaults $1,300: Is this the start of the epic short squeeze everyone's waiting for?

Bullion was ripping higher in Asian trade on Monday with the gold price scaling the crucial $1,300 level for the first time in a month.

A number of observers say the relatively rare occurrence of backwardation in the gold futures market means that physical demand is about the overwhelm the over-leveraged bullion banks and an imminent short squeeze of epic proportions will send prices soaring again.

Could this be the breakout for bullion that gold bugs have been waiting for?

Gold price vaults $1,300: Is this the epic short squeeze everyone's waiting for?

 

This chart shows just how the longs and the shorts in the gold market have come to a head:

Gold price vaults $1,300: Is this the epic short squeeze everyone's waiting for?

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