Gold hovers near seven-week peak as US bond yields slips

"We've seen that the 10-year yield has pulled back and has broken through that very important 1.6 percent level... that probably means there is more weakness in yields, at least near term, which is very supportive for gold," said DailyFX currency strategist Ilya Spivak.

Benchmark US Treasury yields slipped to a one-month low, reducing the opportunity cost of holding non-interest bearing gold. The dollar headed for its worst back-to-back weekly drop this year.

Meanwhile, data showed China's economy grew at a record pace in the first quarter, expanding 18.3 percent from a year earlier.

Recent economic readings from the United States and China lifted hopes around a swift economic recovery and prompted investors to seek riskier assets.

Earlier this week, Federal Reserve Chair Jerome Powell and other Fed officials, said the brighter economic forecasts and a brief period of higher inflation will not affect monetary policy and the central bank will keep its support in place until the crisis is over.

"In the long run, some amount of inflation, due to the massive influx stimulus money, will keep gold supported," said Stephen Innes, chief global market strategist at financial services firm Axi.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation.

Silver slipped 0.1 percent to $25.84 per ounce. Palladium was up 0.2 percent at $2,744.91, and gained about 4 percent for the week. Platinum climbed 0.4 percent to $1,198.04.