Gold prices rose on Wednesday, hovering near a seven-week high hit earlier this week, as a soggy dollar and a retreat in US Treasury yields lifted demand for the safe-haven metal.

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Spot gold was up 0.2 percent at $1,779.85 per ounce by 0205 GMT, after hitting its highest since February 25 at $1,789.77 on Monday. US gold futures edged 0.2 percent higher to $1,781.60 per ounce.

"The US dollar had edged lower this morning, supporting prices, with gold's upward momentum from overnight continuing in Asia," OANDA senior market analyst Jeffrey Halley said.

"Providing that US 10-year yields remain softer, gold appears to be gathering strength for a test of the 100-day moving average at $1,802 an ounce in the days ahead."

The dollar index fell 0.1 percent against its rivals after touching a near seven-week low, while benchmark 10-year US Treasury yields dropped below 1.6 percent, reducing the opportunity cost of holding non-yielding bullion.

Market participants now await the European Central Bank meeting on Thursday for further clarity about stimulus plans for the bloc. The US Federal Reserve policy meeting is due next week.

Gold is seen as a hedge against inflation that could follow stimulus measures, but higher Treasury yields have dulled some of the appeal of the non-yielding commodity this year.

"In the big picture, gold prices are moving higher from lows established below $1,700 as the dollar remains weak and U.S. yields declined in the face of a new driver - geopolitics," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.

"With a delay due to the accelerating spread of the coronavirus, gold traders would expect the Fed and other central bankers to remain dovish."

Among other precious metals, silver eased 0.3 percent to $25.80 per ounce. Palladium rose 0.6 percent to $2,777.62, while platinum fell 0.4 percent to $1,182.08.