Gold is considered a hedge against rising inflation, but it is highly sensitive to rising U.S. interest rates, which would increase the opportunity cost of holding gold as a non-yielding asset. Fed funds futures are pricing in an almost 80% chance of a Fed rate hike in March and a nearly 75% chance of at least two hikes in the first half of the year.

Bart Melek, head of global strategy at TD Securities, said: "Non-farm numbers were very disappointing. But despite weak employment, the relative consensus is that inflation pressures remain. Gold still rebounded slightly in the first quarter, gaining another $40-$50, but after that Gold could slide to lower levels," Melek said. "There's no guarantee the Fed will be restrictive. The market thinks the Fed will act forcefully, but I'm not so sure they can."

Phillip Streible, chief market strategist at Blue Line Futures, said this week could mark the peak of the Fed's hawkishness given the changing macro data and omicron situation. “Gold will recover from this sell-off. We’re taking advantage of this correction to buy gold again. Right now, it’s trading in the lower part of its range and it’s worth stepping in at these price levels.” Chief Market Strategist at Blue Line Futures Teacher Phillip Streible said.

Gainesville Coins precious metals expert Everett Millman noted that long-term drivers remain supportive of higher gold prices. "Even if interest rates are rising, high inflation still means negative real rates. That's good for gold," Millman said. "Also, gold has done very well at the start of rate hikes over the past two rate hike cycles. We could see a repeat of that when rate hikes start later this year. It should push gold closer to $1,900.”

In general, the short-term trend of gold prices is still relatively weak. If the 1800 mark cannot be recovered, the price of gold may continue to run weakly. This week's CPI data is still very important, and the hawkish trend of the Federal Reserve is expected to become the most important factor affecting the price of gold.