Streible thinks that a third round of quantitative easing could be in the cards when the Federal Reserve's current program runs out in June. Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, backed up Ben Bernanke Tuesday by saying that inflation was "tame" in the U.S. despite the fact that individual prices for food and energy are rising.

Lockhart also said that tightening the Fed's monetary policy wouldn't help rising raw costs. A rate hike is definitely off the table, but is QE3 on the table?

More free money into the system could offset rate hikes from emerging market economies. "I think that gold prices are going to start to trend higher, it just might not be as aggressive until they get further confirmation of that," says Streible

Streible thinks new highs could be achieved, but for gold to reach the $1,500 and above level a complete euro meltdown would have to take place.

Trader Scott Redler, chief strategic officer at T3Live.com, says if the SPDR Gold Shares ( GLD) holds $130.50 he will "add cash flow thru $132 for a continuation of what started last week." Shares were trading at $133.02.

Dominating the gold market was the news that JPMorgan Chase ( JPM) would now accept gold as collateral for lending. This puts gold in a category with triple-A rated Treasury bonds and other securities currently allowed to be used as collateral. Exchanges like the CME already allowed gold to be put up to meet margin requirements.

Gold received the boost as a currency after President Nixon abandoned the gold standard in 1971. Since World War II, countries allowed their currency to be set at a fixed rate against the dollar, which was then backed by gold. After this system was debunked, gold lost a pivotal identity and then became a safety asset that yielded no returns.

JPMorgan's move expands gold's usage as the investment bank looks to capitalize not only on hedge funds' gold reserves but on individual investors as well. Of the current above ground supply of gold, $3 trillion is bullion, half is held by central banks but the other half is held by high net worth individuals, according to Nick Barisheff, CEO of Bullion Management Group.

The World Gold Council is going one step further. The GLD sponsor has submitted a plan to Basel III for gold to be accepted as collateral by the international banking community, that it should be counted as a high quality, highly liquid asset.

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