Gold prices rebounded from a six-month low on Thursday, as investors bought the metal at bargain prices while awaiting a key US inflation report that could shed more light on the Federal Reserve's policy outlook. Spot gold rose 0.5% to $4,095.64 per ounce by 0558 GMT, after hitting its lowest since November 21 at $4,022.09 earlier in the day. US gold futures for August delivery were down 0.4% at $4,116.20, Reuters reported. "With prices hurtling towards $4,000, it's an obvious level of support that could prompt bears to book a quick profit or tempt battered bulls from the sideline," said Matt Simpson, a senior analyst at StoneX. "The US dollar index failed to gain much ground following Wednesday's CPI report. So, unless there are any nasty surprises in PPI (Producer Price Index) - gold could be due a technical bounce over the near term." US consumer inflation increased at its fastest pace in three years in May, boosted by surging prices for energy products amid the Middle East conflict. The May US PPI data is due at 1230 GMT. Traders are pricing in a more than 70% chance of a US rate hike by December, according to the CME FedWatch tool. The United States and Iran traded air attacks on Thursday for a second straight day, with US President Donald Trump vowing further strikes if Tehran did not immediately agree to a peace deal. Oil prices climbed on Thursday, after Iran declared the closure of the Strait of Hormuz following US strikes. Elevated crude oil prices can accelerate inflation, and while gold is viewed as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal. Spot silver rose 0.4% to $63.95 per ounce, platinum gained 0.4% to $1,671.09, and palladium climbed 2.9% to $1,248.45.
