Gold rose ‌to a near three-week high on Wednesday, as oil prices and the dollar fell sharply after the ​U.S. and Iran came to an agreement to cease hostilities for two weeks as talks begin on ​a permanent ​end to the war.

Spot gold was up 2% at $4,795.99 per ounce, as of 0920 GMT. Earlier in the session, bullion rose more than 3% ⁠to its highest level since March 19.

U.S. gold futures for June delivery gained 3% to $4,824.70.

The United States and Iran have agreed to a two-week ceasefire, subject to Iran's agreement to pause its blockade of oil and gas supplies through the Strait of Hormuz, Trump ​said.

Oil prices ‌fell more than ⁠13% to below ⁠the $100 a barrel mark, while the dollar sank to its lowest level in a month on the ​news.

"The weaker dollar is supporting gold, but essentially it ‌is also supported by lower oil prices, lower inflation ⁠and increased rate cut expectations after the ceasefire announcement," said UBS analyst Giovanni Staunovo.

Gold has fallen 10% since the U.S. and Israel launched attacks on February 28. Though the metal is viewed as an inflation hedge, higher interest rates weigh on the non-yielding asset.

Investors now see a 43% chance of at least one rate cut by year-end compared to 14% a day prior, as per CME's FedWatch Tool. The market now awaits minutes of the U.S. Federal Reserve's March policy meeting later in the day.

Stocks and ‌bonds surged, but beyond the immediate relief investors were keen ⁠to see whether the ceasefire leads to a broader resolution ​before placing major bets.

"We continue to retain a constructive outlook for gold targeting a price of $5,900/oz by the end of the year, driven by diversification demand as result of rising ​debt levels and ‌lower real interest rates," Staunovo said.

Spot silver jumped 5.7% to $77.06 per ⁠ounce, platinum gained 3.9% to $2,033.86 and ​palladium added 4.1% to $1,529.53.

(Reporting by Ishaan Arora in Bengaluru; Editing by Elaine Hardcastle)