Spot gold surged this morning in reaction to Bernanke's speech, which was and is being "translated" as an overture to keep rates very low and Fed policy very accommodative for the forseeable future. In other words, to "create" the environment that will be most conducive to fostering job creation. Be that as it may, traders and investors interpreted Bernake's remarks as supportive for current easy money policy, but also as a primer designed to help the markets manage their expectations about the future of current policy. Spot gold did not waste a moment before it took off to the upside to begin to discount more easy money, perhaps inflationary expectations, and most importantly, the unintended consequences of Bernanke's policies. This morning's thrust points spot gold directly at a confrontation with its next key near term resistance zone at $1692 to $1700, which if (when?) hurdled should trigger a "panic-type" surge that should propel prices to revisit the 2/29 high at $1791.16. Only a sudden reversal and decline that breaks and sustains beneath $1659.20 will compromise my current bullish outlook for gold and the SPDR Gold Shares (GLD).