[MARKET ANALYSIS] Metals pare back earlier losses as high volatility continues

• Precious metals continued its selloff early in the APAC session, with spot gold dipping to a trough of USD 4655/oz while silver slipped to USD 60/oz. Metals have rebounded since the earlier selloff as the yellow metal nears new session highs of USD 4900/oz.
• 3M LME Copper gapped lower at the start of trade, falling to a trough of USD 12.54k/t, before paring back losses and returning back above USD 12.8k/t. The red metal has been weighed on in recent sessions by AI and big-tech spending, this time following Amazon earnings, in which CapEx is expected to rise higher than expectations.

The recent volatility in precious metals reflects a broader market retraction, with spot gold and silver initially falling before rebounding as traders reassess the environment. The move in copper is particularly notable, as it appears to be influenced by shifts in tech spending, highlighting the interplay between commodity demand and broader economic signals. This continued volatility may suggest heightened trading opportunities but also the need for caution in positioning due to uncertain fundamentals.