Gold is mildly bid in Asia, but gains could be transient if the 10-year US treasury yield rises for the third straight day.

Friday's stellar non-farm payrolls number signaled that recession fears are likely overdone.

Gold is reporting moderate gains in Asia, but these could be short-lived if the treasury yields extend the two-day winning streak.

As of writing, the yellow metal is changing hands at $1,314; up 0.20 percent on the day; having hit a low of $1,308 yesterday.

The zero-yielding metal rose to a high of $1,326 on Jan. 31, after the Fed signaled patience on rate hikes. The US central bank's dovish turn, however, was anticipated and priced well in advance by the markets.

The dollar index, therefore, defended the 200-day moving average (MA) line of 95.28 on Jan. 31 and jumped to near 96.00 levels yesterday. Further, the 10-year treasury yield has risen by ten basis points in the last two days.  The metal, therefore, posted losses in the last two trading days.

The minor uptick seen at press time will likely peter out during the day ahead if the 10-year moves past the previous day's high of 2.73 percent. That is likely to happen as Friday's big beat on the non-farm payrolls has convinced many that the Federal Reserve has gone too far in pleasing the markets.