This year, platinum and palladium-focused exchange traded funds (ETFs) are expected to get a boost from both investment and industrial demand improvements. That’s great for those metals, but what does it mean for gold?

Analysts expect both platinum and palladium to have a stellar year in 2010 because of the increase in industrial production. The latest launch of the related ETFs will also put pressure on demand for the metals. [How the metals ETFs are meeting investor demand.] Is it possible for them to surpass gold in the performance category? [The new ETFs are taking much of the investor interest.]

It’s widely believed that they will, in fact, have a better year than gold because of the heightened expectations, reports Devon Maylie for The Wall Street Journal. Some of the assets that were in the gold ETFs may even be moved into the new platinum and palladium funds as their popularity grows. [How precious metals are transforming ETF investing.]

Holdings in the new ETFs are up, while holdings in certain gold ETFs are sightly down, indicating a  shift in investor interest. But don’t feel too bad for gold – no one’s forecasting a big drop in prices just yet, and if gold drops below $1,130 an ounce, it could lure bargain hunters and push prices back up.