The following will allow you to get the image data without having to create a temporary file (I've had nightmares with temporary files before when too many users were online...)
ob_start(function($c) {return "data:image/png;base64,".base64_encode($c);});
imagepng($image);
ob_end_flush();
This will output something similar to:
data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAABAAAAAQAgMAAABinRfyAAAAAXNSR0IArs4c6QAAAAxQTFRFAGVygICA/8wz/+aZTn6FEAAAAAF0Uk5TAEDm2GYAAAABYktHRACIBR1IAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAB3RJTUUH2wkZEwoSgxq4wwAAAB1pVFh0Q29tbWVudAAAAAAAQ3JlYXRlZCB3aXRoIEdJTVBkLmUHAAAAS0lEQVQI1w3EMQ3AMAwEwMdTEmWRSF68h0RQBIKl5vkUirdGX99wuKUPKkjJkfM4jueE+ivo7VW6wDCCq1VtEdtiIMY2BGlgwUU+P38ZK+RwskeQAAAAAElFTkSuQmCC
Which is suitable for use inside an <img src="..." />
.
Edit For PHP < 5.3 without anonymous functions:
// Define the function first
function ob_base64_encode($c) {
return "data:image/png;base64,".base64_encode($c);
}
// And pass its name as a string
ob_start('ob_base64_encode');
imagepng($image);
ob_end_flush();