DBS Bank said it will offer a structured wealth management product linked to the performance of gold from December 7 to attract clients in Shanghai who are banking that the metal will maintain its rising trend.

In a week where the gold price twice rose to record highs DBS announced that the wealth management product, which guarantees the principal, offers a maximum return of 21% in 18 months if the price of gold does not double.

Gold has rallied 11% since India bought 200 tons of gold from the International Monetary Fund in November. In the week beginning 30 November, Gold climbed to its highest price ever, reaching US$1204 an ounce. It has risen 37% in 2009. At the same time the dollar has dropped 8.4%.

In a statement, the Singapore bank said. "The product targets those who expect wild price fluctuation but are confident that the price will still rise."

The Bank of China and the Bank of East Asia currently offer similar gold-linked structured wealth management products in Shanghai, and the Industrial and Commercial Bank of China and the Industrial Bank offer spot gold trading on the Shanghai Gold Exchange for individuals.