[MARKET ANALYSIS] Spot gold erodes the prior days gains as USD strength weighs

In the precious metals space, spot gold has eroded some of Monday's upside, hovering just below the USD 5,200/oz mark, with recent USD strength weighing. XAU and XAG trade in the lower ranges of USD 5135.135-5250.005/oz and 84.785-88.756/oz, respectively. Elsewhere in the precious metal space, UBS reported that gold may surge to USD 6,200/oz in the near future, outlining that factors fuelling the recent rally remain intact. Primarily, ongoing geopolitical concerns between the US and Iran and equity/AI uncertainty. Note, Shanghai Gold Exchange said it will cut its margin ratio and price limits for some gold and silver contracts as of the closing settlement on the 24th of February. Copper prices have picked up, coinciding with its largest buyer, China, returning to the market after the holiday period. As such, the red metal trades above the USD 13k/t mark. That aside, there hasn’t been much newsflow regarding the red metal. Currently, 3M LME copper trades in the upper range of USD 13.005-13.061k/t.