Overall the prospect of a move higher looks increasingly likely, with prices set to clear the high of last year and push on towards $500 before the year is out,

Platinum looks set to test $1100/oz while a break above $298/oz would leave the way clear for palladium to test of $330/oz.

The combination of early closes, thin volumes and end-of-year book squaring are set to keep volatility high, but with gold set to close above $500/oz, the prospects of further gains in 2006 are looking very strong indeed.

Buying overnight has lifted platinum back to $1 080/oz and the bullish mood in the metal looks set to test $1 100/oz in the coming sessions.

The general bullish tone still seen within the commodities sector as well as the lack of chart resistance looks set to push platinum to further highs in the coming sessions.

The big issue is what demand is going to be next year. High prices tend to attract higher production and higher supplies. The question then is, What will happen to the demand side? The fact is, we rarely know what is going to happen.