Gold prices dropped on Tuesday, weighed down by a firmer U.S. dollar, as investors assessed uncertainty around Middle East peace talks and awaited a key Congressional confirmation hearing with Federal Reserve Chair nominee Kevin Warsh.

By 06:15 ET (10:15 GMT), spot gold had slid by 0.8% to $4,782.74 an ounce, while gold futures had fallen by 0.6% to $4,802.49 an ounce.

Denting the appeal of gold was a strengthening in the dollar, which can make bullion more expensive for overseas buyers. A tracker of the greenback against a basket of currency peers was last higher by 0.2%, as cautious traders flocked to the dollar, which some have argued presents a safe-haven thanks partially to the belief that heavy U.S. energy exports will help insulate the country from Iran-linked oil shocks.

Also weighing on the yellow metal were oil prices, which are hovering well above pre-war levels due in large part to a weekslong closure of the Strait of Hormuz, a vital conduit for a fifth of the world’s oil. The effective shuttering of the waterway was reinstated over the weekend, despite having been temporarily reopened to commercial shipping traffic on Friday.

The jump in oil prices has fueled fears that a bout of inflationary pressures could hit countries around the world, potentially leading central banks to hike interest rates. This could bode poorly for non-yielding assets like gold, which tend to underperform in elevated rate environments.

U.S.-Iran peace talks in question

Uncertainty surrounded the prospect of fresh peace talks between the U.S. and Iran on Tuesday, with both sides presenting conflicting signals ahead of the fast-approaching expiration of a temporary ceasefire deal.

The pause to the fighting is set to run out later this week, although the exact timing of the deadline remained unspecified. U.S. President Donald Trump announced the two-week ceasefire on April 7 at 6:32 p.m. ET (22:32 GMT).

Citing a Pakistani source, Reuters reported that the halt to hostilities would end at 8 p.m. Eastern time on Wednesday, or midnight GMT on Thursday.

With the clock ticking down, Pakistan, which has served as a frequent mediator between Washington and Tehran, has been moving to clear the path for renewed talks to resolve a conflict which began with joint U.S. and Israel strikes on Iran in late February.

Warsh set for Senate confirmation hearing 

Beyond the Iran war, investors are eyeing the confirmation hearing of Kevin Warsh, Trump’s pick to become the next Fed Chair. The Fed’s independence from Trump – who has constantly demanded lower interest rates – will be of particular interest for Wall Street.

Warsh will testify before the Senate Banking Committee at 10:00 ET (14:00 GMT).

His nomination has been viewed as less dovish than markets were expecting. While Warsh has expressed support for Trump’s demands for lower rates, he has in the past criticized the Fed’s asset buying activities, and has called for a leaner balance sheet.

Gold and other precious metals plummeted from record highs following Warsh’s nomination in late-January. In prepared remarks for the hearing cited by media reports, Warsh emphasized the Fed’s independence from political influence, but also noted that the bank should remain focused on its primary goals.

His confirmation as Fed Chair is likely to be delayed even as incumbent Chair Jerome Powell’s term ends in May. Several top lawmakers have called for Powell to stay on until the Trump administration drops an investigation into Powell and the Fed over allegations of corruption in a renovation project. The probe was widely criticized as an attempt to coerce the central bank.