Updates prices

By Ashitha Shivaprasad

June 15 (Reuters) - Gold prices rose for a third straight session on Monday to an over one-week peak after Iran and the U.S. said they have agreed terms to end their war, a move that eased expectations of higher interest rates.

Spot gold XAU= was up 2.6% at $4,327.82 per ounce by 1:30 p.m. EDT (1730 GMT), after hitting its highest since June 5 earlier in the session. U.S. gold futures GCcv1 settled 2.7% higher at $4,351.6.

The U.S. dollar index .DXY was down 0.2%, making metals priced in the greenback more affordable for holders of other currencies. USD/

A memorandum of understanding to end the war has been signed by U.S. President Donald Trump, Vice President JD Vance and the speaker of Iran's parliament, a U.S. official said. Previous reports from both sides had suggested it would be signed officially at a ceremony in Geneva on Friday.

"The gold market is moving past the conflict and pricing it out. The peace deal news took down Treasury yields, the dollar and oil, and those were the biggest inflation and cross asset risks," said Phillip Streible, chief market strategist at Blue Line Futures. O/R [US/]

Gold has faced pressure since the Iran conflict began as high energy prices and inflation concerns raised the chances of interest rate hikes, which tend to weigh on the non-yielding asset.

After the framework deal, traders cut the odds of a U.S. rate hike in December to 58% from nearly 70% last week, according to the CME FedWatch tool.

Attention is now turning to the Federal Reserve's June 16-17 policy meeting, Chair Kevin Warsh's first at the helm, as markets look for clues on the interest-rate outlook.

Gold's next price move all comes down to Warsh, his tone, and what he is going to say about the interest rate path, said Streible.

Meanwhile, Singapore will establish an over-the-counter gold clearing system and introduce central bank gold-vaulting services, the deputy prime minister said.

Among other metals, spot silver XAG= rose 3.1% to $70.09 per ounce, platinum XPT= gained 3.2% to $1,772.85, and palladium XPD= jumped 4.9% to $1,345.98.