May 12 (Reuters) - Gold prices were steady in early Asian trade on Friday as investors assessed recent U.S. data that signalled a slowing economy and its impact on the Federal Reserve's interest rate trajectory.

 

FUNDAMENTALS

* Spot gold held its ground at $2,016.86 per ounce by 0021 GMT after ending lower in the previous session. U.S. gold futures edged 0.1% higher at $2,021.80.

* Gold prices 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 lost its allure as the U.S. dollar gained upper hand, making bullion more expensive for overseas buyers.

* A debt limit meeting between U.S. President Joe Biden and top lawmakers that had been scheduled for Friday has been postponed, and the leaders agreed to meet early next week, a White House spokesperson said on Thursday.

* Large U.S. lenders will bear most of the cost of replenishing a deposit insurance fund that was drained of $16 billion by the collapse of Silicon Valley Bank and two other lenders, although mid-sized banks will also be on the hook, the Federal Deposit Insurance Corporation said on Thursday.

* Markets are currently pricing in an 89.9% chance of the U.S. central bank holding rates at its current level in June.

* 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.

* SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.12% to 937.84 tonnes on Thursday from 938.99 tonnes on Wednesday.

* Spot silver was flat at $24.17 per ounce, while platinum fell 0.2% to $1,091.13 and palladium rose 0.2% to $1,554.63.

 

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips)