Barclays Not So Bearish On Palladium

Author: Paul Ploumis
20 Jan 2015 Last updated at 02:33:49 GMT
(Kitco News) - Despite a bearish outlook on gold prices, Barclays says the underlying factors for palladium may present an opportunity for investors.

"Disinvestment and concerns over China have scope to weigh on palladium in the near term while safe-haven buying could push gold higher; however, we believe the underlying fundamentals look attractive for palladium and would view lows as a buying opportunity while gold is likely to lose steam," the bank says in their Metals Market Outlook report.

They add that they expect gold prices in Q1 to be the highest for the metal this year, adding that current gold prices are "approaching toppy levels, in our view."

However, their outlook on palladium remains optimistic.

"Palladium, on the other hand, has fallen below $770/oz and, in our view, represents a healthy buying opportunity."

Courtesy: Kitco News