[MARKET ANALYSIS] Metals rebound with spot gold returning above USD 4900/oz

Precious metals have brushed off the recent tarnish following the aggressive selloff in recent sessions. Spot gold has regained the USD 4900/oz handle as being as low as USD 4400/oz in Monday's session. Investors have been highlighting that the selloff is just a correction and that underlying drivers for gold, mainly central bank buying and ETF inflows, remain strong.
This demand for the yellow metal could be seen in person, as people queued up to buy gold in Singapore and Sydney to take advantage of the recent drop in prices to buy the dip.
On the other hand, silver isn't seeing that same demand as gold, despite outperforming gold so far in Tuesday's session. ETF outflows continue for silver so if the price for the metal were to stabilise and rise on strong drivers, inflows would be key.
3M LME Copper continues to rebound, alongside precious metals, as the red metal extends to a session high of USD 13.48k/t. The bounce from the recent selloff comes amid a broader reversal of the risk tone and reports that China could expand its strategic copper reserves. China maintains stockpiles of major base metals such as copper and cobalt to stabilise commodity prices and ease raw material cost pressures. The expansion of the reserves comes amid the recent volatility of metals prices.