Palladium Tumbles Amid Hawkish Fed Signals and Rising Oil Prices

Palladium prices continued to decline on Tuesday, reaching around $1,350 per ounce. This marks the second consecutive session of losses for the metal after it hit three-month highs.

The stronger US dollar and higher US Treasury yields weighed heavily on palladium, following hawkish signals from Federal Reserve Chair Kevin Warsh.

Warsh's comments hinted that policymakers may need to take further action if inflation fails to return to its 2% target. This led to increased expectations of a September rate hike, which added to the pressure on palladium.

The metal also faced challenges from higher oil prices amid escalating tensions in the Strait of Hormuz, which lifted inflation expectations and added to the pressure on palladium.