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Spot gold gained around half a percent to $1,263.30 an ounce by 0711 GMT, while U.S. gold was little changed at $1,264.30 an ounce. Spot gold has risen more than 1 percent this week after closing down 0.9 percent in the previous week.

"This is reminiscent of market reacting to FOMC statement," said Daniel Ang, analyst at Phillip Futures in Singapore. "Gold is finding support at $1,260, it is reluctant to go below that level and it is mainly due to weaker U.S. dollar."

"With the RMB continuing to internationalize at an increasing rate, positioning it to become a global currency, China should further increase gold reserves to match its GDP," said Song Xin, General Manager of China National Gold Group Corporation.

"Gold reserves should become the cornerstone of RMB internationalization, which means fixing the yuan to gold more closely," Song commented in an online interview during the annual NPC and CPPCC Sessions.

"When the global economy was smaller, the gold standard had clear advantages. But with the expansion of the world economy and the collapse of the Bretton Woods system, the dollar was no longer pegged to gold. So the U.S. began to say gold was not important anymore. However, during the financial crisis, the U.S. did not decrease its gold reserve; on the contrary, the gold reserve was actually increased in order to strengthen people's confidence in the dollar," Song said.

Reference : People's Daily Online, Reuters