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.