Precious metals appear to have been caught up in the festive spirit, posting significant gains as data boosts risk appetite.
But just as the holidays are short lived, analysts are already cautioning that there is no fresh buying and thinning trading volumes could be the perfect cocktail for price volatility.
Both gold and platinum prices reached one-week highs on Wednesday, the second day of posting solid gains, before retreating.
After a burst of 1.3% on Tuesday, gold rose 0.9% to US$1,628.30 an ounce while spot platinum gained 0.8% from its previous close to trade at US$1,441.50 an ounce.
By mid-afternoon on Wednesday both metals were backtracking with gold down almost US$8 at US$1,609.98 and platinum was US$4 lower at US$1,426 an ounce.
FastMarkets charts were indicating the next resistance level for gold at the 200-day moving average of $1,624 and then $1,642, while support stands at $1,614.
A close above $1,603.10 for the second consecutive day on Wednesday could lead to further strength, it said.
Positive economic data out of the US and Europe helped improve prices, as did the strengthening euro and weakening dollar.
Gold is currently 16% off its all-time high of US$1,920.30 hit in early September but is still around 13% up this year.
On average, over the last 10 years gold has risen 17% annually.
But gold investors are keeping an eye on the numbers due out of the US later on Wednesday as well as for news on the European Central Bank's (ECB) offer of three-year loans to banks.
The US is set to release its November existing home sales figures. But besides these statistics, market reports suggested that investors were awaiting the revisions to past home sales data. This is expected to show that total sales were actually weaker than previously reported going back as far as 2007.
In the meantime, the ECB is expected to report how much European banks plan to borrow in terms of its new funding programme.
Analysts estimate the banks are borrowing about EUR300 billion euros at the 1%.
"Positive risk sentiment could lead to further gains, particularly with thinner pre-holiday conditions although the threat of further dollar/cash related liquidation will continue to overhang the market," said FastMarkets analyst James Moore in his morning report.
Further cash-related liquidation is the reason gold is unlikely to revisit its historical high anytime soon.
While the precious yellow metal gives comfort against currency risks, inflation and sovereign debt problems it is no shield in a liquidity crunch.
In the meantime platinum, which was once the belle of the precious metals ball has regained some favour.
After muted price gains this year the white precious metal is picking up again as an alternative investment to gold.
Platinum was trading at a premium of almost 100% to gold early this decade but gold's close link with the global economic shifts has helped win it a largest chunk of investment portfolios.
Unlike gold, platinum prices are more closely linked to supply and demand.
Platinum opened in January at US$1,768 an ounce, which puts it down 19% this year - making it cheap relative to gold.
Recent moves in the platinum price have been due to threats of looming supply constraints.
SA platinum producers have had a tough year reporting production declines due to safety stoppages and labour disputes but SA, the world's largest platinum producer, is not expected to be a significant contributor to 2011 supply growth. SA platinum production is expected to rise by a modest 3% to 4.78 million ounces in 2011 with most growth coming from other regions.
Precious metals company Johnson Matthey said overall platinum supplies are expected to rise 5.7% to 6.4 million ounces in 2011, with the largest growth in supply being recorded in North America, where production is seen climbing 80% to 360,000 ounces, and Zimbabwe, with a growth of 20% in production largely due to Anglo American Platinum's Unki mine coming on stream.
Going into 2012, growth in platinum supply lies solely in SA's hands.
"Production should rise (in the short term) but the uncertainties are greater than they have ever been before," said Johnson Matthey principal analyst Alison Cowley last month.
"Supplies of platinum from SA once again have the potential to rise modestly in 2012 as a result of improved underlying production. Although the industry still faces disruptions, recent developments give grounds for cautious optimism," Johnson Matthey said in its Platinum 2011 Interim Review.
