Palladium is the smallest and least liquid of the listed precious metals, which is precisely why it produces the largest percentage moves. Open interest is a fraction of gold's, so a modest flow can move it several percent.
Substitution between palladium and platinum in catalytic converters is technically possible but takes automakers years to implement, so shortages persist and prices overshoot. Palladium traded above $3,000 in 2022 and below $900 two years later.
Example: palladium at $1,000 is $100,000 per contract, the same notional as a gold contract at $1,000 an ounce — but with a fraction of the depth. A 5% day is $5,000 per contract, and the bid-ask in deferred months can be several dollars wide.
Related: platinum-futures, gc, comex, liquidity, concentration-margin