* Biden, McCarthy debt ceiling meeting postponed

* Gold, silver headed for weekly decline

* Demand for physical gold seems to be picking up - ANZ

May 12 (Reuters) - Gold prices ticked down on Friday pressured by an overall strength in the dollar, although persistent economic fears and the U.S. debt ceiling standoff cushioned bullion's further decline.

Spot gold fell 0.2% to $2,010.63 per ounce by 0720 GMT and was down 0.2% for the week. U.S. gold futures shed 0.3% to $2,015.00.

While investors are looking at uncertainties surrounding the debt talks and expecting a pause in rate hikes by the Federal Reserve, there seems to be some profit-taking that's pushing prices down, said Brian Lan, managing director at dealer GoldSilver Central.

Gold rose on Thursday after data showed a jump in weekly jobless claims and the smallest annual increase in producer prices last month in over two years, but the metal ended lower as the dollar gained the upper hand, making bullion more expensive for overseas buyers.

Meanwhile, a debt limit meeting between U.S. President Joe Biden and top lawmakers has been postponed to early next week.

Safe-haven bullion tends to gain during times of economic or financial uncertainty, while lower rates also lift the appeal of the zero-yield asset.

Markets have basically priced in the idea that the Fed is probably done hiking at this point, but traders are still looking for clear indications on the rate trajectory, said Ilya Spivak, head of global macro at Tastylive.

Markets are currently pricing in an 90.4% chance of the U.S. central bank holding rates at its current level in June.

Separately, ANZ in a note said it expects central banks in developing economies to keep up their demand for gold to protect their foreign exchange reserves.

"Demand for physical gold seems to be picking up as consumers adjust to higher prices. A good monsoon season in India could lift gold buying there in H2 2023," it added.

Elsewhere, spot silver fell 0.7% to $24.01 per ounce, platinum shed 0.4% to $1,089.23.

Palladium rose 0.2% to $1,554.74. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips, Uttaresh Venkateshwaran and Sohini Goswami)