Gold climbed to a near three-week high after the United States and Iran agreed to a two-week ceasefire, easing tensions in the Middle East and lifting expectations of lower interest rates. Spot gold rose 2 percent to $4,795.99 per ounce after earlier gaining more than 3 percent, while gold futures for June delivery advanced 3 percent.

The agreement, which includes a pause in Iran’s blockade of oil and gas supplies through the Strait of Hormuz, sent oil prices down more than 13 percent to below $100 a barrel. The dollar also fell to its lowest level in a month, making gold more attractive to investors.

Analysts said the weaker dollar, lower oil prices and reduced inflation pressures boosted expectations of interest rate cuts, supporting the precious metal. Investors now see a significantly higher probability of at least one rate cut by year-end compared with the previous day, as they await minutes from the Federal Reserve’s March policy meeting.

Other precious metals also rallied, with silver, platinum and palladium posting strong gains. Despite the rebound, gold remains about 10 percent below levels seen before late February, when the United States and Israel launched attacks, and analysts maintain a constructive outlook for further price gains by year-end.