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U.S. gold rose to a record high for a third straight session on Thursday, its longest string of record highs since January 7. The metal’s rise was modest. Silver futures prices for June delivery, now the most active contrast, rose $0.07 to close at $39.60 an ounce on the Comex in New York. Silver prices hit an intraday low of $39.21 and a high of $39.67. Both gold and silver were range bound on Thursday after making record high and 31 Yr. highs in previous session.

Speculative buying, heightened Portugal's debt concerns, fears of inflation, an aftershock in earthquake and geopolitical tensions contributed to gold and silvers performance. Gold and silver both are being treated as ultimate reserve asset. U.S. dollars deterioration over past few months and depleting valuation of most the major currencies due to negative interest rate makes gold and silver the best place to park money. Weaker housing at least through end of 2011, rising core inflation, and the high unemployment rate which is showing no sign of going down sharply anytime soon, are reasons why gold and silver will catch a bid for coming weeks to come.

Most metals, precious, as well as base metals rallied on Thursday after news about Japan's 7.1 magnitude broke out. Copper for May delivery added 5 cents, or 1.1%, to settle at $4.42 a pound. July platinum retreated $7.20, or 0.4%, to $1,790.60 an ounce. Palladium for June delivery was off $4.35, or 0.6%, to $780.25 an ounce.

The U.S. dollar was marginally higher. The U.S. dollar index was up 0.06, or 0.07%, to close at 75.57. The U.S. dollar index hit an intraday low of 75.53 and a high of 75.82. The U.S. dollar index is still below the middle band of bollinger bands and closed below the seven-day moving average. This does not bode well for the U.S. dollar. Traders expect continued weakness in the U.S. dollar. I think, UUP, the PowerShares USD index, will come under pressure in coming days. I recommend either staying on the sidelines or getting short exposure to UUP.

As for precious metals, I expect both gold and silver to continue their climb. Some traders think that silver has been up for seven straight days and Friday might bring weakness for silver. But I believe that, silver can continue to find on Friday. I suggest getting long exposure to SLV (iShares Silver trust) or AGQ (ProShares Ultra Silver). But to double the return from climb in silver I recommend getting short exposure to ZSL (ProShares UltraShort Silver). To profit from rise in gold, I recommend getting long exposure to GLD (Sprider Gold Trust ) or UGL (ProShares Ultra Gold). To double the return from rise in gold, I would recommend getting short exposure to GLL (ProShares UltraShort Gold).

Source: How to Double the Return From the Rise in Gold and Silver