To update prices and add details

June 15 (Reuters) - Gold prices rose for a third straight session on Monday, hitting their highest level in nearly a week, after Iran and the United States agreed to end their trade war, a move that eased expectations of an interest rate hike.

Spot gold reached $4,344.77 an ounce by 12:42 GMT, its highest level since June 9. U.S. gold futures also rose 3 percent to $4,366.80.

The dollar index fell 0.2 percent, making precious metals priced in the US currency more accessible to holders of other currencies.

Although the agreement is still a general framework, it represents the most significant progress made toward ending the war and will lead to the reopening of the Strait of Hormuz, which should lower oil prices. The memorandum of understanding is scheduled to be formally signed on Friday in Switzerland.

Philip Streible, senior market analyst at Blue Line Futures, said, "The gold market is beginning to move beyond the fallout from the conflict... The announcement of the peace agreement has led to a decline in US Treasury yields, the dollar, and oil, which are the biggest risks affecting inflation and asset price volatility."

Gold has been under pressure since the start of the Iranian conflict, as rising energy prices have increased the likelihood of interest rate hikes, which negatively impacts this non-yielding asset.

The CME Group’s FedWatch tool shows that traders now expect the Federal Reserve (the US central bank) to raise interest rates by December at 54.8 percent, down from about 70 percent last week.

All eyes are now on the Federal Reserve's monetary policy meeting scheduled for June 16 and 17, the first meeting chaired by Kevin Warsh, as markets look for clues about interest rate expectations.

As for other precious metals, silver rose 4.6 percent to $70.07 an ounce in spot trading, platinum climbed 4.6 percent to $1,796.45, and palladium gained 5.1 percent to $1,348.30.