Gold prices rebounded from a two-week low on Tuesday as bargain buying emerged after Monday's sharp decline, with spot gold gaining 0.5% to $4,021.87 an ounce and gold futures advancing 0.55% to $4,027.22. The recovery followed a nearly 3% drop in the previous session, which briefly pushed prices below $4,000 for the first time in three weeks. Renewed Middle East tensions, including a US blockade on Iranian shipping and a proposed 20% fee on Hormuz Strait cargoes, stoked inflation fears, while hawkish comments from Federal Reserve Governor Christopher Waller raised the probability of a July rate hike to 43%. Investors now await US consumer price data and testimony from Fed Chair Kevin Warsh for further policy clues.