Domestic precious metals rose on Monday after reports that the US and Iran agreed on a roadmap toward a final peace deal within 60 days, easing earlier market concerns.

MCX gold reclaimed the Rs 1.48 lakh mark, touching an intraday high of Rs 1,48,498 per 10 grams and trading around Rs 1,48,275 — up Rs 1,072 or 0.73% from the previous close. MCX silver surged more sharply, rising more than Rs 4,525 (1.94%) to trade near Rs 2,37,710 per kilogram, close to the day’s peak of Rs 2,37,952. MCX gold hit an intraday high of Rs 1,48,498; MCX silver approached Rs 2,37,952 per kg..

International spot prices also strengthened: spot gold climbed above $4,200 an ounce while spot silver traded near $65.50, gaining about 1% on the session, market data showed.

The jump followed diplomatic progress between Washington and Tehran that appeared to defuse recent escalations in the Middle East. Markets had been jittery after both sides exchanged threats over the conflict in Lebanon and Tehran’s claim of closing the Strait of Hormuz; nonetheless, millions of barrels of crude continued to transit the waterway over the weekend and Gulf producers readied output increases, according to Trading Economics.

Investors are also awaiting this week’s US Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred inflation gauge. After last week’s policy meeting, the Fed kept rates on hold but signalled a firmer stance: nine of 19 policy makers now expect at least one rate hike this year, and markets are increasingly pricing a possible move as early as September.