Gold rose more ​than 2% 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 ‌2.5% to $4,322.87 per ounce by 0312 GMT, hitting its highest level since June 9 and extending gains for a third straight ‌session. US gold futures for August delivery rose 2.5% to $4,344.80.

US ‌and ⁠Iranian officials said on Sunday they had agreed on a ⁠framework to end their war, halt the U.S. 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 U.S. dollar fell to a 10-day low, making greenback-priced bullion cheaper for other currency holders, while oil prices slipped more than 4%.

"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.

"This combination is ⁠providing the precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."

Gold ‌prices have fallen about 20% since the start of the U.S.-Israeli war against Iran in late February. The effective closure of the Strait of Hormuz has led to a sharp increase in global oil prices, stoking inflation concerns and raising expectations of interest rates staying higher for longer.

Bullion loses appeal in a high-interest-rate environment as it is a non-yielding ‌asset.

Markets have scaled back expectations for a U.S. rate hike in December to ​48% after the peace deal, down from 69% last week, according to the CME FedWatch tool.

Investors now await the Federal ⁠Reserve policy decision and remarks, the first under Chair Kevin Warsh, on ⁠Wednesday, with rates widely expected to remain unchanged.

"Currency debasement concerns, fiscal risks and ongoing geopolitical fragmentation continue to underpin long-term demand (for ‌gold). A moderation in energy-led inflation could help these themes regain traction," OCBC said in a note.

Spot silver rose 3.6% to $70.39 ​per ounce, platinum gained 3.3% to $1,773.70 and palladium climbed 3.3% to $1,324.75.

Published on June 15, 2026