Amid illiquid trading conditions and fresh record highs by the euro against the dollar, gold managed a rally through $444 a fine ounce on Tuesday morning.

The precious metal rallied to an intraday high of $445.50 on Tuesday and, according to Standard Bank's daily commentary, continues to hold well this morning in Asia with next targets set for a possible break through $447 and potential for a close to 2004 at around $450.

Thin trading conditions have seen all precious metals in buoyant form on the back of a further record declines in the US dollar against the Euro.

"Against the background of Friday's announcement that US home sales declined 12 percent in November, its sharpest loss in more than a decade as well as market rumour that neither US nor European governments are set to intervene to assist the ailing dollar, the Euro firmed to a record high at $1.3640 (on Monday)," Standard Bank said.

At 1.30pm on Tuesday gold was being quoted at $444.90/oz, from $445/oz at the previous close. The euro was last at $1.3634 from a previous close of $1.3618.

Any expectations of peaceful holiday trading in PGM markets on Monday were shattered as platinum soared to close up $24.00 on the previous London PM Fixing, according to Standard Bank.

"There appeared some evidence of safe haven buying on TOCOM in reaction to potential Asian currency weakness following the Tsunami earthquake. In New York, locals easily bid up platinum in such thin market conditions to the extent that funds began to take notice and added to the flurry of buying.

"The industrial metal has held close to its closing level this morning in Asia but with few participants expected in trading today, a retracement may be in sight when full market activity is resumed tomorrow. Palladium followed its sister metal upwards yesterday to close at $186 bid but with the key fundamentals of over supply and lack of demand still in place, further upward potential looks limited," Standard Bank added.

Platinum was last quoted at $862/oz, down $3.00/oz from its previous close, while palladium was quoted at $186.50/oz, down $1.00 from Monday's close.

As Tuesday is a public holiday in the UK, there are no London morning fixes available.