Palladium prices fell 1.2% on Monday during a broad decline in precious metals. Rising geopolitical tensions in the Middle East pushed oil prices higher. These conflict fears stoked concerns about persistent inflation and restrictive monetary policies.
The metal faced headwinds due to its sensitivity to industrial demand and investor sentiment. Higher energy prices raised fears of weakened global growth and reduced automotive demand. A strengthening U.S. dollar added further pressure to the dollar-denominated commodity.
Palladium has lost nearly 7% over the past week. Macroeconomic factors currently overshadow supply-side tightness from major producers. Precious metals remain caught between inflationary pressures and the prospect of higher-for-longer interest rates.