Palladium Falls Nearly 5% Amid Middle East Tensions

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.

Palladium decreased 5.04% to 1704.5 USD/t.oz

Palladium futures rose past $1,800 per ounce, rebounding from recent losses to reach a one-month high as escalating tensions in the Middle East stoked concerns over supply and broader market stability. The advance followed joint US-Israeli strikes that reportedly killed Iran’s Supreme Leader, Ayatollah Ali Khamenei, prompting US President Donald Trump to warn that combat operations would continue until objectives are met, with the possibility of further casualties. On the supply side, the market remains tight, with output disruptions in South Africa and ongoing uncertainty over Russian exports constraining available volumes. Investors are now turning their attention to a series of US labor market readings this week, a series of US labor market readings this week, including the ADP employment report, weekly jobless claims, and the non-farm payrolls report, which could later influence dollar strength and interest rate expectations.