The youngster superbly curled Pep Guardiola‘s side into the lead with just under 15 minutes remaining, but the Gunners struck back deep into stoppage time through Leandro Trossard’s deflected strike.
Mikel Arteta’s side held their nerve in the penalty shootout to claim FA Community Shield glory.
Palmer, who was a constant threat after coming on from the bench in the second-half, admitted his disappointment after the defeat, but urged the team to dust themselves off and prepare for the season ahead.
“We were very close. Gutted to concede,” he reflected. “We have to pick ourselves up and go again.
“When I received the ball, [Kyle] Walker told me to get at him. I came inside and saw the far corner and it went in.
“I had the shot before that too. I should have shot that first time, but when the second one came, I went for it and thankfully it went in.
“I can see the plan for the season, hopefully I can play as many games as possible.
“I feel fresh from England [international duty]. The final [U21 Euros] wasn’t long ago, but I feel fresh and good.”
The 21-year-old, who won the Premier League, FA Cup and UEFA Champions League with City last season, also tasted success with England U21s as they were crowned European champions last month.
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The Academy graduate understands that another Treble will be difficult this season, but feels that with the current squad, it is possible.
“Hopefully we can win the treble again,” he said. “It’ll be a difficult task.
“The lads are fresh in training and are working hard. Hopefully we can do it all over again.”
