Palladium Falls Nearly 5% Amid Middle East Tensions
2026-03-03 10:52
By
Joana Ferreira
1 min. read
Palladium futures tumbled to $1,700 per ounce, retreating from one-month highs hit last week, as investors reassessed safe-haven demand amid heightened global market uncertainty.
Despite ongoing Middle East tensions, which typically support precious metals, traditional safe-haven assets came under pressure as traders focused on broader economic risks.
Iran and US allies continued exchanging strikes following the weekend, with Iranian forces targeting key energy infrastructure and warning they could attack any vessel or tanker crossing the Strait of Hormuz.
The developments sparked surges in global energy prices, driving the US dollar higher amid expectations of a hawkish Federal Reserve response and increased demand for safety.
On the supply side, the market remains tight, with output disruptions in South Africa and ongoing uncertainty over Russian exports constraining available volumes.