Ammon News - Gold rose more than 2% on Monday after U.S. 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 $4,323.29 per ounce by 0536 GMT, hitting its highest level since ​June 9 and extending gains for a third straight session. U.S. gold futures for August ​delivery rose 2.5% to $4,343.80.

U.S. 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%.

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.

Asian stocks surged on Monday morning as traders took in news of a deal between Iran and the U.S.

"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 3.3% to $70.19 per ounce, platinum gained 2.8% to $1,765.40 and palladium ​climbed 3.1% to $1,323.22.


Reuters