Palladium Tumbles Amid Soaring Treasury Yields and Strong Dollar

Palladium prices dropped sharply on Tuesday, losing 2.6% in morning trading to reach $1,175.26, as a combination of factors weighed on the metal.

The move was largely driven by elevated U.S. Treasury yields and a stronger dollar, making dollar-denominated metals more expensive for international buyers.

Investors were also cautious ahead of Friday's September Nonfarm Payrolls report, which added to the pressure on palladium prices.

Despite a brief reprieve in August PCE inflation data, which saw headline PCE come in at 3.4% year-over-year below consensus expectations, the metal's decline continued.