Ammon News - Gold prices rebounded from a six-month low on Thursday, as investors ‌bought the metal at bargain prices while awaiting a key U.S. 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. U.S. gold futures for August delivery ⁠were down 0.4% at $4,116.20.

"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 U.S. 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."

U.S. 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 U.S. PPI data is due at 1230 GMT.

Traders are pricing in a more than 70% chance of a U.S. 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 U.S. 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 U.S. 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.

Reuters