Gold prices have hit another record high, rising almost 2 percent to $1,274.75 an ounce. It was the largest single day gain in four months.

Analysts gave a variety of reasons for gold's new highs including increased demand for gold jewelry in India for the wedding season.
    
They also cited dismal reports of Europe's economy as a reason for the spike, saying investors often turn to gold if the global economy is weak. 

"People are flocking to gold out of pure confusion," trader Matthew Zima of LaSalle Futures Group told Bloomberg. "People would rather play safe than sorry and go for gold as an insurance policy amid this mixed data on the economy."

Finally, some analysts also pointed to the weak dollar as a reason to buy gold.

Silver's Strength

Silver prices are also surging with gold.  Like gold, silver also has uses in industry and up to now has been relatively cheap.

"Silver is gaining speedily on gold in what appears to be a bull market for all precious metals," Dennis Gartman, publisher of the Gartman Letter, told The Chicago Tribune.

Gartman said potential investors should look at gold and silver prices in relation to each other.

"Pay attention to whether silver weakens less than gold on a correction," said Gartman, adding that's the time to be careful about holding gold and could suggest continued strength for silver.