Is Palladium Stealing Gold’s Thunder?

New York (Jan 24)  Although gold continues to garner much attention, the silent star in the precious metals space may just be palladium, this according to U.S. Global Investors CEO Frank Holmes. Speaking with Kitco News Tuesday, he notes that palladium prices are up 15% while gold is just up 5% year to date. However, he remains optimistic on gold as the metal seems to be on track for more upside.

Comparing gold prices to this time last year, Holmes notes gold is closely tracking last year’s price action after the Federal Reserve hiked interest rates. ‘Over a 12-month rolling period for the past 20 years, gold is flat…therefore, it’s very mathematically probably that it can rally 20% over the next 12 months — that would be 1 standard deviation,’ he says. ‘It can easily rally another 8% over the next 60 trading days,’ he adds. Gold futures pulled back Tuesday after hitting a two-month high overnight, with February Comex gold settling the day 0.38% lower at $1,210.80 an ounce.

Source: TheStreet