REUTERS

Gold rose more than 2 percent on Monday after US and Iran officials said they had reached an initial agreement to end their war, pushing oil prices lower and easing concerns about inflation and higher interest rates.

Spot gold climbed 2.3 percent to $4,316.03 per ounce by 0730 GMT, hitting its highest level since June 9 and extending gains for a third straight session. US gold futures for August delivery rose 2.3 percent to $4,337.20.

US and Iranian officials said on Sunday they had agreed on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz. The pact will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X.

The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4 percent.

“Lower oil prices and a softer dollar, stemming from reduced geopolitical risk and the anticipated reopening of the Strait of Hormuz, are helping to calm inflation expectations,” said Tim Waterer, chief market analyst at KCM Trade.