With the new tax plan fanning fears of inflation and exploding U.S. government debt, the gold bugs have resurfaced. 

Gold prices have spiked more than 6% to $1,315 an ounce since a nearly five-month bottom on Dec. 12. For technical traders, the move has been pretty bullish as gold prices have been above their 50-day, 100-day and 200-day moving averages since Dec. 18.

To be sure, gold bugs have several things to latch onto at the moment. 

The tax law could send deficits ballooning by $1.7 trillion over the next 10 years, according to a projection from the Congressional Budget Office (CBO). U.S. debt would rocket to 97.1% of GDP in 2027, up from 91.2% using the CBO's prior projections. The deficit spike could slowly undermine confidence in the U.S. dollar, sending investors into gold as a safe-haven. 

Another consideration is a potential surge in U.S. inflation as corporate and middle class tax cuts ripple through the economy. Gold is often seen as a hedge on inflation. 

Maybe gold expert Jim Rickards wasn't so far off base in calling for $10,000 gold prices in a recent interview with TheStreet.

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