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1 Skin diseases like eczema and scabies can also cause red itchy palms. 2  Bumps and exfoliation of palmer skin is observed in these conditions. 3  Bacterial and fungal infection of palms can be a reason for itchy palms. 4  Dry skin of palms can be a reason for itchy palms.
Full Answer. Itchy palms and soles are common symptoms of psoriasis. Other symptoms include red skin, soreness and swelling, states WebMD. One type of eczema known as dyshidrotic dermatitis only affects the hands and feet and can be the cause of itchiness. An early sign of diabetes is a skin condition that makes the hands and feet itch.