Palladium futures fell to around $1,350 per ounce, extending losses for a second session after hitting three-month highs, as a stronger dollar and higher US Treasury yields weighed on the metal following hawkish signals from Federal Reserve Chair Kevin Warsh. Palladium also faced pressure from increased expectations of a September rate hike, with markets awaiting key US labour market data, including the ADP employment report and nonfarm payrolls, for further clues on the Fed’s policy path. Meanwhile, higher oil prices amid escalating tensions in the Strait of Hormuz lifted inflation expectations, adding to pressure on palladium. The metal fell more than 4.3% on Monday after Warsh signalled that policymakers may need to do more if inflation fails to move back toward the Fed’s 2% target. On the supply front, constrained mine output in major producing regions continued to provide some support, though supply concerns were outweighed by broader macroeconomic pressures.