These are know as fire rainbows or circumhorizontal arc. They are said to be caused by the refraction of light. Again it kind of reminds me of what ED said about magnets passing as a concentrated stream through a small space.
"Suppose you had a wheel and many coils around the wheel turning, then you would be making all kinds of light. Do not make the machine; I already have the application for patent in the Patent Office."EDL