Gold price (XAU/USD) is looking vulnerable above the psychological resistance of $2,000.00 in the Asian session. The precious metal has shown a recovery move after printing a four-day low of $1,992.50. However, the recovery move looks fragile as the upside is capped due to bullish bets for the US Dollar Index (DXY).

The USD Index is looking to extend its recovery above the immediate resistance of 101.75 as the likelihood of a consecutive 25 basis point (bp) rate hike from the Federal Reserve (Fed) is extremely solid. The result from the CME Fedwatch tool conveys that the chances of a rate hike are almost 80%.

Meanwhile, S&P500 futures have added significant gains on early Monday after a mild sell-off on Friday. US equities are expected to remain stock-specific amid quarterly results season. Manufacturing and oil dependent companies could show some decent recovery in earnings as gasoline prices were extremely lower in March.

The demand for US government bonds has dropped significantly amid soaring bets for further policy restrictions by the Fed. Atlanta Fed President Raphael Bostic, said one more quarter-percentage-point interest rate hike can allow the Fed to end its tightening cycle with some confidence that inflation will steadily return to its 2% target.