NEW YORK ( TheStreet ) -- Gold prices climbed higher and silver prices soared Thursday as investors bought the metals ahead of a long holiday weekend in the U.S.

Gold for June delivery added $4.90 to close at $1,503.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has hit another record at $1,509.60 while the spot gold price was up $4.30, according to Ktico's gold index.

Silver prices exploded $1.59 higher to close at another 31-year record of $46.05 an ounce, pushing the gold/silver ratio down to the 32 level. The lower the ratio goes the faster silver rallies versus gold. David Morgan, founder of Silver-Investor.com, thinks the ratio could hit 16 while Eric Sprott of Sprott Asset Management is on record as saying the ratio could hit single digits.

Gold rallied for a fifth straight day as the U.S. dollar index continued to tank losing 0.31% to $74.14 at its lowest level since November 2009 and is now trending towards it 2008 level of $72.

A weaker dollar makes gold and silver cheaper to buy in other currencies and dollar weakness also highlights the dollar-backed commodities' appeal as safe haven assets.

Mark Arbeter, chief technical strategist at Standard & Poor's Equity Research wrote in a recent note that the dollar could sink to its "2008 bear market lows ... and gold and silver will enter blowoff stages." Arbeter predicts that silver could spike to $65 while gold could hit $1,650-$1,800 an ounce "before this part of its bull market ends."

Traders are also positioning themselves for a long holiday weekend in the U.S. and might see gold as a good place to store cash. The higher the metals go, however, the more analysts are calling for a correction.

"Given the gains in recent sessions, particularly in gold and silver ... there is the risk of deeper corrections across the metals as long liquidation is seen due to the long Easter weekend," predicts James Moore, research analyst at FastMarkets. "We still expect dips to be viewed as buying opportunities, with gold and silver viewed favorably by investors seeking to hedge against inflation and debt jitters."

In the latest commitment of traders report, silver speculative short positions grew 12% from April 5th to April 12th, the latest data available, while long positions shrunk 5%. With a solid amount of traders betting on lower silver prices, the longer silver prices stay high the more traders have to buy back those short positions for a loss, which in turn, drives prices higher.

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