Updates prices as of 0429 GMT

By Pablo Sinha

June 11 (Reuters) - Gold prices steadied after hitting a six-month low on Thursday, as investors awaited a key U.S. inflation report that could shed more light on the Federal Reserve's policy outlook.

Spot gold XAU= rose 0.1% to $4,077.39 per ounce by 0429 GMT, after hitting its lowest since November 21 at $4,022.09 earlier in the day. U.S. gold futures GCcv1 for August delivery were down 0.8% at $4,098.90.

"Bearish momentum had taken hold of gold, and traders are simply derisking at this point. But 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 - gold could be due a technical bounce over the near term."

Data showed that 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.

Markets now await the May U.S. Producer Price Index data, due later in the day, to further assess the Federal Reserve's monetary policy stance.

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

The United States began a fresh round of strikes against multiple targets overnight in Iran, the U.S. military said on Wednesday, hours after President Donald Trump vowed new attacks if no peace deal is secured.

Oil prices climbed more than $2 on Thursday, as Iran declared the closure of the Strait of Hormuz following the U.S. strikes. O/R

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 XAG= fell 0.1% to $63.64 per ounce, platinum XPT= was steady at $1,663.80, and palladium XPD= climbed 2.3% to $1,241.77.