"The scope for further declines (in gold prices) may be modest," HSBC analysts said in a note, adding that a decline in yields offers gold a chance to rally.
The 10-year yield was last down 2.1 basis points at 1.6552%, holding below a 14-month high of 1.776% reached on March 30.
"We've had yields run up a ton on expectations that inflation is going to be going to the moon ... but (the data) doesn't show any signs of getting completely out of control, at least not yet," he said.
The 5-year and 7-year note yields were up 4 basis points, while that of the benchmark 10-year note hit a near 13-month high.
The US yield curve was a little flatter on Monday, with the spread between 2-year and 10-year notes at 144.1 basis points, after hitting on Friday its steepest since September 2015.
On Wall Street, all three major stock indices closed lower after investors were disappointed by Powell's speech, despite the central bank chair saying price increases are not an immediate concern.