Gold prices fell to a near two-week low on Thursday, as the dollar and U.S. bond yields climbed after Federal Reserve Chair Jerome Powell indicated the central bank will stick with raising rates to tame inflation.

Spot gold fell 0.9% to $1,620.19 per ounce by 1024 GMT, while U.S. gold futures slipped 1.7% to $1,621.90.

"The sentiment in the gold market is clearly negative. In case of continued aggressive tightening, more sentiment-driven and dollar-driven selling remains the biggest risk for gold. Prices could undershoot," said Julius Baer analyst Carsten Menke.

"Considering how bearish the mood in the gold and silver markets already is today, we believe that prices should remain rather rangebound in this scenario – that is between $1,650 and $1,600," Menke added.

The U.S. central bank raised interest rates by 75 basis points on Wednesday and signalled it may be nearing an inflection point.

Bullion rose as much as 1.3% after the release of the Fed policy statement, before ending the session 0.8% lower on Powell's remarks.

Higher U.S. interest rates increase the opportunity cost of holding the non-yielding asset and boosts the dollar.

The dollar was up 1.5%, making gold more expensive for other currency holders. Benchmark U.S. 10-year Treasury yields also rose.

"The Fed has hinted for slower rate hikes going forward, but terminal rate expectations have shifted higher. This would exert downward pressure on gold in the near term," said ANZ commodity strategist Soni Kumari.

ECB President Christine Lagarde said on Thursday the ECB could not simply mimic the Fed because economic conditions were different in the 19-country euro zone.

On the physical front, Australia's Perth Mint reported a surge in sales of gold products in October, while silver sales dipped.

Elsewhere, spot silver fell 1.5% to $18.99 per ounce, platinum shed 0.7% to $923.25, and palladium lost 1.6% to $1,825.18.

(Reporting by Arundhati Sarkar and Eileen Soreng in Bengaluru; Editing by Shailesh Kuber and Vinay Dwivedi)