Palladium prices witnessed a sharp correction on Thursday, January 29, falling nearly 8% from intraday highs to trade near $1,966 per ounce, as heavy selling pressure swept across global metal markets. The decline comes amid a broader sell-off in precious and industrial metals, triggered by global pressure and aggressive profit selling.
One of the key reasons behind the fall is profit booking after recent gains. Palladium had seen a sharp run-up in previous sessions, prompting traders to lock in profits once prices began to soften. As selling intensified, prices quickly moved lower during the session.
Palladium was also dragged down by weak sentiment across the metals complex. Gold and silver witnessed steep corrections during the day, with silver crashing nearly 15% and gold extending losses beyond 5%. The synchronized fall across metals points to widespread unwinding of positions rather than palladium-specific weakness.
In addition, heightened volatility and risk-off sentiment across global markets led to the exit of leveraged trades. Once palladium slipped below key intraday levels, stop-loss triggers and margin pressures likely accelerated the decline.
Additionally, the European Union has officially designated Iran’s Islamic Revolutionary Guard Corps (IRGC) as a “terrorist organisation”, marking a significant escalation in tensions between Europe, Iran, and the United States. The decision was announced following a meeting of European foreign ministers, according to EU’s top diplomat Kaja Kallas.
The move comes amid already heightened geopolitical tensions in the Middle East, with Iran warning of a strong military response to any potential attack by the United States. Iran’s foreign minister stated that the country’s armed forces are ready to respond “immediately and powerfully” if threatened.
Shortly after the EU announcement, Iran’s General Staff of the Armed Forces issued a sharp response, condemning the designation as “illogical, irresponsible and spiteful.” In a statement, the Iranian military accused Europe of acting in “unconditional obedience” to what it described as the hegemonic policies of the United States and Israel.
Despite the sharp fall, palladium remains highly volatile by nature, and such steep intraday moves are not uncommon, especially during periods of extreme market swings.
Market participants are now watching whether prices stabilise near current levels or see further downside, as volatility across global metals remains elevated.
