Gold breaks through $1,330

Gold is up sharply on Monday and trading at US$1,334.48 per ounce as of 1:30 EST.

Silver is up also trading at $20.65 per ounce.

The vaulting gold price may be physical demand finally catching up to the market price .

Kitco's Jim Wyckoff attributes gold's gains to ". . .  heavy short covering and new technical buying as buy stops were hit that pushed prices well above what was stiff chart resistance at the $1,300.00 level."

The Federal Reserve has also helped by affirming that monetary policy in the US will remain accommodative.

It's a better day for gold miners, too.

Over the last five days Barrick Gold (NYSE:ABX) is up 18% to $17.72 and Goldcorp has gained 12% to $29.01.

Less than two weeks ago gold was as low as $1,211 per ounce and silver was at $18.65 per ounce.