Elsewhere, there was relatively little action, with most markets closed on December 25 and 26 and on January 1, also closing early on other days, meaning many traders abandoned their desks for the whole festive period.

GOLD: Gold hit its highest level for almost eight years as further sharp falls in the dollar made the metal more affordable for non-US buyers, with a low volume of transactions also increasing market volatility.

By Friday afternoon, gold prices stood at 415.25 dollars an ounce on the London Bullion Market against 410.80 dollars on December 24, the last day of trading before Christmas.

The peak came on Wednesday when gold hit 417.25 dollars during the first of London's twice-daily fixings, the highest price since early February 1996, when gold rose to 417.70 dollars.

However the 1996 price was an interim, or "spot", gold price. Wednesday's price was the highest fixing since February 7, 1990, when it hit 423 dollars.

Although gold also benefitted from its status as a safe-haven investment amid fears of terrorist attacks over the holiday season, the dollar remained the main factor in the metal's surge, analysts said.

The dollar's fall to all-time lows against the euro and multi-year troughs against other currencies was "the only factor for gold", said Stephen Briggs from Societe Generale.

"We have started the New Year in the same situation -- the dollar is at new lows against the euro and sterling. That has been a clear benefit," he said.

SILVER: Silver reached the symbolically important six dollar per ounce mark for the first time since May 1998, pulled up once again in gold's wake.

The landmark came on Wednesday, when silver crept up to 6.01 dollars per ounce before falling back slightly.

Silver's ascent in tandem with gold has come despite worries about its use as an industrial metal, with the photographic industry in particular consuming far less of the metal to make films as digital technology gradually takes over.

Silver could nonetheless yet rise further, said James Moore from specialist website TheBullionDesk.com.

"Resistance above six dollars is looking pretty formidable at the moment but if gold jumps higher it will probably follow, with 6.10-6.15 dollars being its next target," he said.

The silver price stood at 5.985 dollars per ounce on the London Bullion Market on Friday against 5.720 dollars on December 24.

PLATINUM AND PALLADIUM: Platinum remained steady just below recent 23-year highs as the closure for much of the week of the key Japanese metals market limited any real action.