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, Reuters reported.

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. U.S. gold futures for ​August delivery rose 2.5% to $4,344.80.

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%.

“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. FEDWATCH

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, read the report.

“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.

Afghanistan’s Ministry of Mines and Petroleum says a number of Iranian companies and investors have expressed interest in investing in the country’s mining and petroleum sectors as economic cooperation between the two neighbors continues to expand.

According to the ministry, Deputy Minister for Policy and Programs Abdul Rahman Qanit met on Saturday with Iran’s ambassador to Afghanistan, Alireza Bikdeli, representatives of the Afghanistan-Iran Joint Chambers of Commerce, and an accompanying delegation to discuss investment opportunities and bilateral cooperation.

During the meeting, Bikdeli outlined plans and initiatives linked to agreements reached during a previous visit by officials from Afghanistan’s Ministry of Mines and Petroleum to Iran. He emphasized the importance of strengthening cooperation between the two countries, particularly in the mining industry.

Qanit welcomed the delegation and highlighted Afghanistan’s significant mineral wealth, reaffirming the ministry’s commitment to supporting foreign investment in the sector.

“Afghanistan is a mineral-rich country, and the Ministry of Mines and Petroleum welcomes all international investors interested in investing in the country’s mining sector,” he said, adding that the ministry is prepared to provide the necessary facilities and support for investors.

Representatives of the Iran-Afghanistan Joint Chamber of Commerce praised the ministry’s efforts to attract investment, saying improved security conditions and growing business opportunities have encouraged Iranian firms to explore projects in Afghanistan.

They noted that Iranian investors are especially interested in the mining and petroleum sectors and expressed the private sector’s willingness to cooperate in technical training, engineering development, and the transfer of expertise in mineral exploration and extraction.

At the conclusion of the meeting, Qanit assured participants that the ministry would provide full cooperation to investors in line with Afghanistan’s Mining Law and established procedures.

The discussions come as Afghanistan seeks to attract foreign investment to develop its vast untapped mineral resources and strengthen regional economic ties.

A high-level Iranian private sector delegation, led by the head of the Iran–Afghanistan Joint Chamber of Commerce, has arrived in Kabul for a week-long visit aimed at expanding trade and investment cooperation between Afghanistan and Iran.

According to the Iranian Embassy in Kabul, the delegation will hold a series of meetings with Afghan business leaders and officials in Kabul before traveling to Mazar-i-Sharif. Discussions will focus on strengthening bilateral trade relations, increasing trade volumes, and exploring new investment opportunities in key economic sectors.

Officials from the Afghanistan Chamber of Commerce and Investment (ACCI) said talks with the visiting delegation have already centered on enhancing commercial cooperation, supporting private sector partnerships, and increasing Afghan exports to Iranian markets.

Sayed Karim Hashimi, head of the ACCI, highlighted Afghanistan’s growing investment potential, stating that the country currently offers favorable conditions and significant opportunities for regional and international investors.

Meanwhile, Iran’s ambassador to Kabul said the delegation will assess existing trade-related challenges and work with Afghan counterparts to identify practical measures for improving economic cooperation and facilitating cross-border commerce.

Afghan trade officials noted that one of the primary objectives of the visit is to secure greater market access for Afghan products in Iran while laying the groundwork for stronger long-term economic partnerships between the two neighboring countries.

The Iranian delegation is expected to continue consultations with a wide range of Afghan business representatives and private sector stakeholders during its seven-day stay.