* Gold firms, trades close to Friday's 9-week top
* Asia shares fall sharply amid China confusion
(Updates prices)
By Naveen Thukral
SINGAPORE, Jan 11 (Reuters) - 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. MKTS/GLOB
Spot gold XAU= rose 0.1 percent to $1,105.30 an ounce by
0725 GMT. U.S. gold GCcv1 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 (N:GLD), rose 4.2
tonnes on Thursday, data from the fund showed.
Bullion is often seen as an alternative investment during
times of financial uncertainty, although safe-haven rallies tend
to be short-lived.
Gold slid 10 percent last year on fears higher U.S. rates
would lower demand for the non-interest-paying asset, while
boosting the dollar. A stronger greenback makes
dollar-denominated gold costlier for holders of other
currencies.
Silver XAG= rose 0.3 percent at $13.978 an ounce, while
platinum XPT= lost 0.4 percent at $871.53 an ounce. Palladium
XPD= was down 1.7 percent to $486.75 an ounce.