Gold edged higher on Monday, trading close to last session's nine-week high as pressure on Asian stock markets supported safe-haven bids for the metal. Asian shares sank to their lowest in over four years as doubts mounted about Beijing's ability to manage the world's second-biggest economy. Spot gold rose 0.1 percent to $1,105.30 an ounce by 0725 GMT. US gold gained 0.7 percent to $1,105.40.
"We have some supportive factors in the market such as Saudi Arabia-Iran tensions, devaluation of yuan, which have prompted safe have appeal of gold," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers Ltd in Hong Kong. Gold climbed to its highest since early November on Friday, adding more than 4 percent to its value this year, on concerns over the Chinese economy and tumbling stock markets.
Perceived missteps by China's authorities in controlling their share market and currency have led to concerns Beijing might lose its grip on economic policy too. China will face great difficulty in achieving economic growth above 6.5 percent over the 2016-2020 period due to slowing global demand and rising labour costs at home, the China Securities Journal quoted a top state adviser as saying. Investment appetite for bullion showed signs of picking up last week. Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 4.2 tonnes on Thursday, data from the fund showed.
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