Palladium futures fell to $1,700 per ounce, pulling back from the one-month highs reached last week as investors reassessed safe-haven demand amid elevated global market uncertainty. Although persistent tensions in the Middle East would typically bolster precious metals, traditional safe-haven assets came under pressure as traders shifted their focus toward broader macroeconomic risks.
Iran and US allies continued to exchange strikes following the weekend, with Iranian forces targeting key energy infrastructure and warning they could attack any vessel or tanker transiting the Strait of Hormuz. These developments triggered sharp increases in global energy prices, pushing the US dollar higher on expectations of a more hawkish Federal Reserve stance and stronger demand for safety.
On the supply side, the palladium market remains tight. Production disruptions in South Africa, coupled with ongoing uncertainty surrounding Russian exports, continue to restrict available volumes.
