Gold prices hit a more than one-week low on Wednesday, as a firmer US dollar and Treasury yields continued to weigh on bullion demand. Spot gold was down 0.3 percent at $1,944.77 per ounce, as of 02:06 GMT, after hitting its lowest since April 11, US gold futures fell 0.6 percent to $1,947.70.

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On Tuesday, prices fell up to 1.8 percent as a stronger dollar and rising Treasury yields overshadowed inflows into bullion. "With the US dollar still firm today, and with China declining to lower its one and 5-year loan prime rates, it looks like the long squeeze (in gold) is continuing in Asia," said OANDA senior analyst Jeffrey Halley.

The dollar held near recent highs, making greenback-priced gold less attractive for other currency holders. China kept its benchmark lending rates for corporate and household loans steady at its April fixing, defying expectations, as Beijing has become more cautious in rolling out easing measures to aid a slowing economy.

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US Treasury yields continued to surge to multi-year highs as investors prepared for the Federal Reserve to aggressively raise rates as the central bank tries to stem soaring inflation. Gold is highly sensitive to rising US interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion.

While recent gains show Ukraine is still a key focus, the move overnight is about rebalancing fast money flows, and not a structural change in gold's outlook, Halley said, adding a sustained rise by US 10-year yields through 3 percent could change that outlook.

On Monday, gold prices came within touching distance of the key $2,000 per ounce level as the Ukraine crisis and mounting inflation worries drove investors to the safety of bullion.

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Spot silver dipped 0.6 percent to $25.00 per ounce, and platinum eased 1.3 percent to $977.93, while palladium gained 0.4 percent to $2,380.29.