[MARKET ANALYSIS] Copper prices lower due to closures in the Chinese market as celebration for Chinese New Year/Spring Festival holiday commences

• Spot gold takes a breather after edging higher above the USD 5,000/oz mark following a lower-than-expected US inflation data on Friday. However, thus far today, there’s been a lack of fresh catalyst for the yellow metal due to holiday closures across China and North America. Spot gold still trades above the USD 5,000/oz mark at the time of writing, within the USD 4,985.55-5,070.00/oz.
• Copper prices are lower today between tight USD 12,793.64-12,880.83/t confines. Trade around the red metal remains subdued due to the Chinese market holidays as they celebrate the Chinese New Year/Spring Festival holiday over the next week. Volume is further dampened by the US holiday today.

Copper prices are experiencing a decline as the Chinese market enters holiday closures for the Lunar New Year, which is markedly reducing trading volume. This holiday-induced slowdown is significant as China is a major consumer of copper, potentially impacting demand dynamics in the near term. Furthermore, with concurrent US holiday trading inactivity, this creates an environment of subdued market activity that could amplify price movements in the days ahead.