Palladium prices rocketed higher Monday as rising optimism about Europe's economy boosted stocks on both sides of the Atlantic and lifted commodities that rise with increased business activity.

The price of palladium for December delivery rose $31.95 to $617.80, a 5.45 percent jump.

This is a noticeable rise in percentage terms. Increased confidence in the economy will obviously be reflected in increased demand for the platinum group metals, which are used in the manufacture of catalytic converters, said StockMarketsReview.com.

Palladium for immediate delivery shot up $30.74 to $619.04.

The upbeat outlook stems from a Sunday meeting between leaders of Germany and France as well as the rescue of Franco-Belgian bank Dexia, the first major European bank to face a collapse because of the continent's now-chronic sovereign debt crisis.

Silver, which also has significant industrial applications, rose 3.7 percent.