(Updates prices as of 0558 GMT)

* U.S., Iran launch fresh strikes on each other

* May U.S. producer price index data due at 1230 GMT

By Pablo Sinha

June 11 (Reuters) - 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.