* Gold down over 1% so far this week

* Fed's Bostic sees 2 rate cuts in 2024, but not ready yet

* Retail sales saw biggest m-o-m drop since Feb 2023

Feb 16 (Reuters) - Gold was headed for a second straight weekly fall on Friday after an unexpected spike in U.S. consumer prices made traders rethink their rate-cut expectations, though bullion recouped some of the losses following a drop in consumer spending.

Spot gold was flat at $2,003.40 per ounce, as of 0427 GMT, and has lost over 1% for the week so far. U.S. gold futures were also steady at $2,015.30 per ounce.

"There is no war premium, gold ETF holdings are withdrawing, Fed officials striked hawkish tone, CPI came on the higher side, and with dollar likely on a positive side - there is no particular reason for going long on gold," Jigar Trivedi, a senior analyst at Reliance Securities.

Data this week showed inflationary pressures remained intact as U.S. import prices increased by the most in nearly two years in January while consumer prices (CPI) rose more than expected last month. Market now awaits another inflation report - the U.S. producer price index (PPI) - due at 1330 GMT.

"No significant bounce-back in gold is expected and it's possible that prices touch the $1970/oz-1960/oz level ... sentiment will be on the lower side only," Trivedi said.

Recovering some losses for the week, bullion rose about 0.6% on Thursday after U.S. retail sales saw biggest month-on-month decline since Feb. 2023.

Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic said on Thursday that he was not yet ready to call for interest rate cuts and had pencilled in two cuts for 2024, lower than the Fed's collective "dot plot" projection of three cuts released in December.

The Fed will update those forecasts at its policy meeting next month, where it is expected to hold interest rates steady. Traders see the first cut likely arriving in June.

Spot platinum fell 0.7% to $892.04/Oz, palladium dropped 1.5% to $938.55, while silver edged 0.1% higher to $22.93.

(Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips)