Gold down near 1 so far this week
Fed39;s Bostic not yet ready to call for interest rate cuts
U.S. producers price index due at 1330 GMT

Feb 16 Reuters Gold held steady on Friday but was on track for a second consecutive weekly fall as traders lowered expectations of rapid U.S. rate cuts, while markets sought more data for further clarity on the Federal Reserve39;s next move.

Spot gold was little changed at 2,005.39 per ounce, as of 1018 GMT, and has lost nearly 1 for the week so far. U.S. gold futures were steady at 2,017.20 per ounce.

The slight push back on earlier rate cut expectations has seen some unwinding in gold prices, buyers are now seeking to defend the key psychological 2,000 level. But given the resilience of the U.S. dollar, any turnaround for the yellow metal may still be unsustainable in the near term, said IG market strategist Yeap Jun Rong.

The dollar index was set for a weekly rise, making bullion less appealing for holders of other currencies.

Earlier this week, bullion fell to a twomonth low after data showed consumer prices rose more than expected last month, but it recouped some of its losses on Thursday after U.S. retail sales fell more than expected in January.

Until the first cut is delivered, the market may at times run ahead of itself, in the process building up rate cut expectations to levels that leave prices vulnerable to a correction, said Jigar Pandit, vice president and business head of the commodity currency group at…