Gold prices were flat on Tuesday, caught between a stronger dollar and safe-haven demand triggered by concerns over the Russia-Ukraine war and soaring inflation.

Spot gold was flat at $1,978.30 per ounce by 1143 GMT, having hit an over one-month high of $1,998.10 on Monday.

U.S. gold futures eased 0.3% to $1,981.30 per ounce.

“We are a little bit surprised that gold is holding on its own given the firm dollar, high bond yields and all the noise coming from the U.S. Fed regarding interest rate hikes,” Commerzbank analyst Daniel Briesemann said.

Gold is still living up to its reputation as a safe-haven due to the Ukraine war and is also in demand as a store of value given the high inflation in many parts of the world, Briesemann added.

The dollar index scaled an over two-year peak on elevated U.S. Treasury yields and expectations that the Federal Reserve will tighten its monetary policy.

St. Louis Fed President James Bullard on Monday repeated his case for increasing interest rates to 3.5% by the end of the year to rein in 40-year-high inflation readings.

While bullion is considered a safe store of value during times of political and economic crises, as well as a hedge against inflation, a firmer dollar makes greenback-priced gold more expensive for other currency holders.

“Looking at the technical picture, gold has the potential to trend higher, but prices seem to be forming another range,” FXTM analyst Lukman Otunuga said in a note.

“Support can be found at around $1,960 and resistance at $2,000.”

Among other precious metals, spot silver rose 0.2% to $25.89 per ounce and platinum was 0.6% higher at $1,015.92, while palladium dropped 1.7% to $2,397.12.

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