Gold prices rebounded from a six-month low on Thursday, as investors bought the metal at bargain levels while awaiting a key U.S. inflation report that could provide further signals on the Federal Reserve’s policy outlook. News.Az reports, citing Reuters.

Spot gold rose 0.5% to $4,095.64 per ounce by 0558 GMT, after earlier hitting its lowest level since November 21 at $4,022.09.

Meanwhile, U.S. gold futures for August delivery were down 0.4% at $4,116.20.

U.S. consumer inflation rose at its fastest pace in three years in May, driven by surging energy prices amid the Middle East conflict.

The May U.S. PPI data is scheduled for release at 1230 GMT.

Traders are currently pricing in a more than 70% chance of a U.S. rate hike by December, according to the CME FedWatch tool.

Tensions also remained high geopolitically, with the United States and Iran exchanging air attacks for a second straight day. U.S. President Donald Trump warned of further strikes if Tehran did not immediately agree to a peace deal.

Oil prices also climbed on Thursday after Iran declared the closure of the Strait of Hormuz following U.S. strikes, a move that could further stoke inflationary pressures.

Higher crude oil prices tend to accelerate inflation, and while gold is often viewed as a hedge against inflation, higher interest rates generally weigh on the non-yielding metal.

In other precious metals, 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.

News.Az 

By Nijat Babayev