- Iran is considering attending peace talks with US
- Iran condemns US seizure of commercial vessel
- Fed Chair nominee Warsh's Senate hearing at 1400 GMT
April 21 (Reuters) - Gold prices fell on Tuesday, weighed down by a firmer dollar as lingering uncertainty over U.S.-Iran peace talks kept investors cautious, while they also looked forward to a Senate confirmation hearing for Federal Reserve nominee Kevin Warsh.
Spot gold was down 0.7% to $4,785.56 per ounce at 1044 GMT. U.S. gold futures for June delivery fell 0.5% to $4,804.70.
"Today's decline in gold prices reflects fears that, despite the recent drop in oil prices, the situation in the Strait of Hormuz remains uncertain, with the blockade still in place," said ActivTrades analyst Ricardo Evangelista.
"This uncertainty is keeping inflationary concerns alive, supporting the U.S. dollar in a dynamic that creates a headwind for non-yielding gold."
The dollar rose on Tuesday, making greenback-denominated commodities more costly for holders of other currencies.
The U.S. expressed confidence that peace talks with Iran would go ahead in Pakistan and a senior Iranian official said Tehran was considering joining, but significant hurdles and uncertainty remained as the end of a two-week ceasefire neared.
Iran's foreign ministry on Tuesday condemned the U.S. for what it called an attack on the Iranian commercial vessel Touska at the weekend, demanding its immediate release.
Oil prices fell on expectations that peace talks would allow more supply to flow from the key Middle East producing region.
Higher crude prices since the onset of the Iran war have stoked inflation concerns. While bullion is traditionally seen as a hedge against inflation, the non-yielding metal's appeal fades in a high interest-rate environment.
In the U.S., Warsh will tell lawmakers at his Senate confirmation hearing that he is "committed to ensuring that the conduct of monetary policy remains strictly independent," according to prepared remarks released on Monday.
The hearing is scheduled to begin at 10 a.m. EDT (1400 GMT) on Tuesday.
Among other precious metals, spot silver fell 1.2% to $78.94 per ounce, platinum lost 1% to $2,068.32, while palladium was up 0.3% at $1,555.41.
Reporting by Pablo Sinha in Bengaluru; Editing by Louise Heavens and Alexander Smith
Source: Reuters