April 21 (Reuters) - Gold prices edged higher on Wednesday, hovering near a seven-week peak hit earlier this week, as a weaker dollar and a retreat in U.S. Treasury yields lifted demand for the safe-haven metal. FUNDAMENTALS * Spot gold was up 0.1% at $1,779.55 per ounce by 0110 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday. * U.S. gold futures edged 0.1% higher to $1,779.60 per ounce. * The dollar index fell 0.1% against its rivals after touching a near seven-week low in the previous session, making gold less expensive for other currency holders. * Benchmark 10-year U.S. Treasury yields dropped below 1.6%, reducing the opportunity cost of holding non-yielding bullion. * New Zealand"s consumer price index (CPI) rose by faster than expected in the first quarter as transport and housing prices jumped, according to data released by Statistics New Zealand. * The Bank of Japan is set to predict for the first time that inflation will remain well short of its 2% target beyond Governor Haruhiko Kuroda"s term through early 2023, say sources familiar with its thinking. * Market participants now await the European Central Bank meeting on Thursday for further clarity about stimulus plans for the bloc. The U.S. 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. * A gauge of stock prices across the world fell on Tuesday and oil prices also slipped as concern lingered over rising global COVID-19 cases and their effect on the global economic rebound. * Silver eased 0.2% to $25.83 per ounce. Palladium rose 0.6% to $2,778.17. Platinum fell 0.2% to $1,185.47. DATA/EVENTS (GMT) 0600 UK CPI YY March (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)