* Shanghai Gold Exchange eyes interbank market launch
* China's Zijin sees gold output flat at 30 T in 2013
* Amplats extends offer deadline to striking miners
By David Brough
LONDON, Nov 12 Gold extended gains on Monday on
its best week since August, supported by expectations U.S.
monetary policy will remain ultra-loose, while investors also
bought the metal as a hedge against a looming U.S. fiscal
Gold added 0.32 percent to $1,736.5 by 1258 GMT,
holding near a three-week high around $1,738 struck on Friday
and well above a two-month low around $1,672 hit last week.
U.S. COMEX gold futures for December were up 0.34
percent at $1,736.70 an ounce.
World shares, however, with which gold is often correlated,
edged down for a fourth day on Monday, limiting the upside for
the precious metal, which is still trading well off highs of
almost $1,800 reached in early October.
"The gold price is up because of a combination of the
outlook for an expansionary U.S. monetary policy and fears over
the 'fiscal cliff'," said Eugen Weinberg, global head of
commodities research at Germany's Commerzbank in Frankfurt.
He said gold prices could rise further and potentially break
above the peak near $1,800 an ounce in the next few weeks.
Peter Fertig, a consultant with Quantitative Commodity
Research, said a continuing relaxed U.S. monetary policy was
underpinning the gold market
"It is currently the quantitative easing factor that is
providing support to gold, because other fundamental factors
have been negative," Fertig said.
He argued that a potential positive for gold in coming weeks
would be an improvement in the global economy and a resulting
rise in stock markets and investors' appetite for risk.
"There is potential for further upside in gold prices, but
it crucially depends on how Wall Street will react," he said.
"If economic data in coming weeks comes in stronger than
expected, we could see a re-test of the early-October highs near
A slowdown in China has darkened the prospects for the
economy in recent months, but there has been hope in the euro
zone's progress in easing its fiscal worries and the prospect of
a U.S. recovery next year.
President Barack Obama will meet business, labour and civic
leaders this week ahead of talks with Congress on a deal to head
off nearly $600 billion worth of tax hikes and spending cuts
that could derail the U.S. recovery.
Gold rallied to $1,795, an 11-month high, on Oct. 5 after
the U.S. Federal Reserve pushed ahead with another round of
At the London Bullion Market Association (LBMA) conference
in Hong Kong, the president of the Shanghai Gold Exchange told
Reuters the bourse would launch an interbank market early next
month that would start with spot contracts and gradually offer
At the same conference, the general director of the People's
Bank of China, Xie Duo, said the central bank had not set a
time-frame on issuing more gold import licenses to banks but was
keen to further open up the market to the international
Last week, the global head of metals at consultancy Thomson
Reuters GFMS said he expected China's gold demand to grow 1
percent this year to a record of around 860 tonnes, which means
the country would overtake India as the world's biggest consumer
of gold for the first time on a yearly basis.
Gold prices may hit $2,000 an ounce in 2013 as rising costs
and production constraints hold supply in check, while demand
from central banks and Chinese consumers keeps climbing, Barrick
Gold Corp, the world's biggest gold producer, said on Monday.
China's leading gold miner, Zijin Mining Group 601899.SS
2899.HK, sees output flat in 2013 after an expected rise of
nearly 5 percent this year, as falling production at its top
mine is offset by growth elsewhere, a company official said on
Anglo American Platinum AMSJ.J (Amplats) has extended the
deadline to Wednesday for striking workers at several of its
South African mines to accept its latest offer aimed at ending
two months of wildcat action.
Spot platinum traded up 0.85 percent to $1,563.1 an
ounce. Spot palladium was up 1.01 percent at $610.00 an
Silver rose 0.15 percent to $32.63 an ounce.