Gold prices held near a two-month low on Thursday, as traders assessed mixed comments from Federal Reserve officials on January inflation data that dampened some hopes for an imminent and significant cut in interest rates.

Chicago Federal Reserve Bank President Austin Goolsbee said Wednesday that the central bank will remain on track to reach its 2 percent inflation target even if inflation is slightly higher than expected over the next few months.

He added that the central bank should be cautious about waiting for a long period before lowering interest rates.

Goolsbee's statements came after inflation data in the United States, on Tuesday, showed that the consumer price index rose 3.1 percent on an annual basis, which was higher than expectations that had indicated a 2.9 percent increase.

Gold fell about 1.4 percent after the consumer price index data, its largest daily decline since December 4.

The focus is now on US retail sales data scheduled to be released at 1330 GMT and the Producer Price Index numbers to be released tomorrow, Friday.

Price action

By 0157 GMT, spot gold reached $1,992.77 per ounce, after hitting its lowest levels since December 13, Wednesday.

US gold futures recorded $2,004.60 per ounce.

As for other precious metals, platinum fell 0.3 percent to $886.46, and palladium fell 0.5 percent to $929.72. Silver also fell 0.1 percent to $22.35 per ounce.