Major Metals Regaining Luster

- A sustained move in the spot price back above its 200-day moving average could signal that gold is setting a base for further gains.

Silver

The key thing to bear in mind with silver is that it's more of an industrial metal than gold, notes Rhind. Consequently its price is more correlated with manufacturing and industrial activity. Silver prices last year were affected by the economic slowdown but the improved economic data and outlook in 2012 are moving the price higher.

Rhind also points to the gold/silver ratio, which measures how many ounces of silver are in an ounce of gold (by cost). Last year that ratio rebounded from a near 30-year low. "That ratio has rebounded off the bottom," says Rhind, "and if you look purely from a ratio perspective, it may indicate that silver prices are undervalued relative to gold."

Palladium and Platinum

2011 was not a great year for palladium and platinum because these metals are the most geared to industry and cyclical indicators, says Rhind. In particular, palladium's price dropped with the slowdown in global growth and concerns over the European debt crisis.

This year is off to a more promising start, however, Rhind notes: "(Since) the beginning of this year, that's reversed along with the improving economic outlook. So, palladium prices have recovered and obviously if this is an indicator at all, then perhaps palladium and platinum, for that matter, may indeed have a good year in 2012 if the economic recovery and the key industrial indicators keep improving."