Palladium prices declined on Tuesday as the dollar rose against major rivals.
The decline comes as dollar strengthens to 20-year highs at 103.8, with a 0.1% gain so far.
A stronger dollar hurts palladium and other currencies and makes them costlier to holders of other currencies.
The Fed announced last week a hike of 50 basis points in interest rates to below 1%, the largest such hike since 2002,
Investors are concerned such policies are leading the world to global recession and lower demand on commodities.
China remained under lockdown due to a new Covid 19 infectious wave, in turn hammering trade and industrial demand.
Palladium futures due in June fell 0.4% to $2,036 an ounce as of 14:34 GMT.