Gold jumps over 2% after US-Iran preliminary peace deal

BAGHDAD, Iraq — Gold prices rose more than 2% on Monday after the United States and Iran announced a preliminary agreement aimed at ending their war, lifting the metal to its highest level since June 9. Spot gold gained 2.5% to $4,322.87 an ounce, while August U.S. gold futures climbed 2.5% to $4,344.80 an ounce, according to market data. U.S. and Iranian officials said on Sunday they had reached a framework deal to end the war, lift U.S. sanctions and reopen the Strait of Hormuz. Pakistani Prime Minister Shehbaz Sharif said the agreement will be formally signed in Switzerland on Friday. The dollar fell to a 10-day low as gold advanced, while oil prices dropped more than 4%. In rate markets, expectations of a December rate hike by the Federal Reserve declined, with the implied probability slipping to 48% from 69% ahead of the central bank's policy decision on Wednesday. Other precious metals also rallied, with silver up 3.6% to $70.39, platinum gaining 3.3% to $1,773.70 and palladium rising 3.3% to $1,324.75.