* Dollar, bond yields hover close to 5-week highs
* U.S. retail sales increased more than expected in December
* Fed President Bostic expected to speak at 2 events
Jan 18 (Reuters) - Gold prices hovered near five-week lows on Thursday, as hawkish remarks from Federal Reserve officials and robust data dampened investors' expectation for deeper and early interest rate cuts in U.S. this year.
Spot gold edged 0.1% higher to $2,008.59 per ounce by 0347 GMT, a day after it fell to $2,001.72 - its lowest since Dec. 13.
U.S. gold futures rose 0.2% to $2,010.70.
The dollar has strengthened substantially in the past few days, putting a strain on gold prices, Brian Lan at the Singapore based dealer GoldSilver Central, said.
The dollar held close to a five-week peak after data overnight showed U.S. retail sales increased more than expected in December, keeping the economy on solid ground heading into the New Year. Yields on the benchmark U.S. 10-year Treasury notes also hovered near five-week highs.
A stronger dollar makes greenback-priced gold more expensive for foreign currency holders.
"The year has just started and probably a lot of investors think that prices are not going any higher, so it's time to take profit... it's a usual market cycle from what we see," GoldSilver's Lan said.
Traders will be watching out for remarks from Atlanta Federal Reserve President Raphael Bostic, who is expected to speak at two separate events later in the day.
Bostic has said inflation could "see-saw" if policymakers cut rates too soon, echoing Fed Governor Christopher Waller's remark that the Fed should not rush to lower interest rates until lower inflation can clearly be sustained.
Money markets were betting on 142 basis points of Fed rate cuts this year, while pricing in a 61% chance of a March easing, according to LSEG's interest rate probability app, IRPR.
Lower interest rates decrease the opportunity cost of holding bullion.
Spot silver rose 0.4% to $22.61 per ounce, platinum climbed 0.3% to $885.86, and palladium gained 1.1% to $925.32.
(Reporting by Harshit Verma in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
