Metals led the upside as the JSE extended gains by noon on Monday, with metal prices rising on the weak dollar with gold reaching new highs.

At 11.55am the JSE all share index was 1.08 percent higher, with resources adding 1.78 percent, gold producers firming 1.50 percent and platinum miners up 1.62 percent.

Banks gained 1.10 percent, financials collected 0.54 percent and industrials moved 0.57 percent higher.

The rand was bid at 7.48 to the dollar, from 7.55 when the JSE closed on Friday. Gold was quoted at $1165 a troy ounce from $1140.75 at the JSE's last close, and platinum was at $1469.50/oz, from $1433/oz at its previous close.

"We have seen the dollar weaken a bit and that has pushed up the dollar prices of metals, gold particularly reaching new highs, and that had pushed the market up considerably," a trader said.

"It's just showing that the dollar is still a very big factor and the market is watching that. There are a number of economic indicators out this week and we will be watching those.

"Last week we saw a bit of profit taking and now the market has picked up from the low prices, we are mostly stronger on the metal prices. The rand is strengthening now a little bit, but it's not strengthening a lot against the weaker dollar," he said.

"For the rest of the day, Dow futures are looking quite strong and it looks like we are going to remain positive. It looks like we are going to continue on the upside," he added.

Dow Jones Newswire reported that the FTSE 100 was up as a rise in spot gold prices drives miners higher, with the positive tone set to continue over the course of the day, said Michael Hewson, analyst at CMC Markets. While some degree of profit taking is likely ahead of the Thanksgiving holiday on Thursday, commodities are likely to remain well bid, said Hewson. Cadbury +2.2 percent amid news Nestle may bid for the company and after reports

Hershey's trustees are pushing it to launch a rival bid for the chocolate maker. Investors will turn their attention to US existing home sales at 3pm GMT.

The FTSE was last up 1.66 percent.

US stocks are called to open firmly higher as confidence in equity markets strengthens. David Morrison at GFT called the DJIA up 87 points and the S&P 500 up 11 points. Morrison said, "Investors continue to pile into risk assets as they search out yield while anticipating that at some stage, inflation will return." Also notes dollar weakness as central bankers are expected to keep rates low and traders look for stimulus packages to be extended or even increased. In economic news, US existing home sales are at 3pm GMT.

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