This surge was, unsurprisingly, mirrored in oil and stocks whilst the dollar plummeted lower and is set to test the 80 level.
However, "knee jerk" moves such as these very often unwind themselves entirely within a day or two and we would not surprised if that was the case here - after all, what has really changed? Tapering is coming, maybe next month, maybe December but the end of Quantitative Easing is upon us.
A break above 1385 would suggest that the head and shoulders pattern is not going to unfold and a move above 1434 will quickly bring a test of 1485-1500, with even higher prices envisaged.
Our view is that gold will continue to trend lower in the face of rising equities, rising interest rates and low inflation, with the possible exception of spikes related to Syria/other Middle East flare ups.
Today's video for subscribers looks at the head and shoulders chart pattern in more detail and our strategy for our next trade.