[MARKET ANALYSIS] XAU remains above USD 5k/oz; Copper muted heading into Chinese festive period

• Spot gold continues to hold above the USD 5k/oz, with Monday's session managing to close above the level for the first time since the selloff on January 30th. The yellow metal sold off modestly at the start of the APAC session but has since clawed back earlier losses and is only seeing modest losses of 0.2%, at the time of writing.
• Despite the recent selloff, the belief that the yellow metal could still go higher has not disappeared. BNP strategists still see gold at USD 6,000/oz in 2026. The strategists cite that continued central bank buying and ETF inflows holding steady can support the bullion to record highs.
• On silver, BNP is not as bullish compared to its forecast on gold, with the director of commodities strategy seeing a further disconnect between the two metals and a retracement higher in the gold/silver ratio. Currently, spot silver holds around USD 82/oz.
• 3M LME Copper trades muted and in tight ranges, as the Chinese New Year holiday looms. Buying of the red metal is expected to be light going into, and throughout, the holiday period, with buying expected to resume when the festive period ends.

Gold remains resilient above USD 5,000 per ounce, signaling underlying strength driven by central bank demand, despite slight recent losses; analysts suggest upward potential towards USD 6,000 by 2026. Meanwhile, copper is experiencing muted trading ahead of the Chinese New Year, indicating a lull in demand that may limit price movements until post-holiday resumption.