Gold prices fall after 5-day winning streak as US dollar firms

Gold prices tumbled today, Jan. 5, amid growing projections for additional lifting in US interest rates.

The precious metal was dragged by the rise in the two-year US Treasury bond yield at 4.45%. This followed data affirming the continued resilience of the US labor market, which supports the Federal Reserve's continuation of interest-rate hikes.

The ADP National Employment report, published today, showed the US employment market closed out 2022 on a high note. In December only, the private sector added 235,000 jobs, exceeding forecasts of 153,000.

Separate data indicated that initial US jobless claims lost 10,000 jobs to reach 204,000 in the week ended Dec. 31, 2022.

Upon settlement of today’s session, gold for February delivery plunged by 1%, or $18.40, to record $1,840.60 an ounce at 10:03 pm Makkah time.

The US dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.7% to 104.968 points