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Gold prices hit a more than one-week low on Wednesday, as a firmer U.S. dollar and Treasury yields continued to weigh on bullion demand.

Spot gold was down 0.3% at $1,944.77 per ounce, as of 0206 GMT, after hitting its lowest since April 11. U.S. gold futures fell 0.6% to $1,947.70.

On Tuesday, prices fell up to 1.8% as a stronger dollar and rising Treasury yields overshadowed inflows into bullion.

"With the U.S. dollar still firm today, and with China declining to lower its 1 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. [USD/]

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.

U.S. 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. [US/]

Gold is highly sensitive to rising U.S. 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 U.S. 10-year yields through 3.0% 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.

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

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich)