Palladium futures slipped to about $1,700 per ounce, pulling back from recent highs as investors locked in profits after a strong rally, while ongoing weakness across the platinum group metals also pressured sentiment. The decline was part of a broader market sell-off as traders repositioned ahead of key employment and inflation data, with futures now pricing in at least two 25-basis-point interest rate cuts in 2026, the first potentially as early as June.
Additional downward pressure on palladium came from renewed diplomatic efforts in the Middle East, which have tempered fears of a wider escalation in the US–Iran confrontation and, in turn, reduced demand for safe-haven precious metals. Even so, investors remain wary. Israeli Prime Minister Benjamin Netanyahu is set to meet US President Donald Trump in Washington this week to discuss the status of the Iran negotiations and wider regional security issues, highlighting that strategic risks in the Middle East have not fully abated.
