Palladium is starting this year as the best performer among the precious metals, heading for its biggest gain since March, reports Bloomberg. The metal rose 11.17 percent for the week on bets that carmaker demand will grow following positive U.S. and Chinese manufacturing data. Pollution control in China remains a problem, but in the U.S. some auto manufacturers are going to idle some auto plant capacity as dealer inventories are too high.
Gold traders and analysts surveyed by Bloomberg this week were the most bullish in a year. Those surveyed cited worries over U.S. and European political developments as well as expectations for stronger demand in the Lunar New Year. “Chinese New Year this year will fall on the last week of January, which suggests jewelry purchases are likely to hit their season peak in the next couple of weeks,” Vyanne Lai of the National Australia Bank said.