Palat gave Czechia a 3-2 lead with 7:42 remaining in the third with a one-timer off a pass from Martin Necas and dreams of the upset were in full bloom.
"They scored, and then we couldn't hold onto the lead. Too bad," Palat said. "But I'm proud of the team, how we battled against a really good team."
Team Canada has won 14 straight Olympic games involving NHL players, including eight straight games in the playoff round dating to 2010 in Vancouver. They had not trailed in this tournament until the first period of this game and have a 24-6 advantage in goals.
With the game tied 3-3 and 1:13 remaining in the third, Necas had a breakaway but was stopped by Binnington, who denied the attempt to go five-hole.
"When the game got tight, and especially when they took the lead, he shut the door," Canada coach Jon Cooper said of Binnington. "He gave us as a chance to come back. That's what winners do. They give you that chance."