Gold rebounds

Reuters

Singapore

Gold bounced back on Monday, inching closer to last week's 13-month high, ahead of crucial policy meetings at the U.S. Federal Reserve and the Bank of Japan that are likely to provide direction to the yellow metal.

Spot gold had risen 0.6 percent to $1,255.30 an ounce by 0643 GMT, while U.S. gold eased 0.2 percent to $1,256.5 an ounce.

The main focus is the U.S. Fed's policy meeting on March 15-16, after the central bank lifted rates for the first time in nearly a decade in December.

Investors in the precious metals market are also keeping a watch on the Bank of Japan meet.  The BOJ's policy board is set to discuss this week whether to exempt $90 billion in short-term funds from its newly imposed negative interest rate, people familiar with the matter said, after the securities industry warned that investment money would be driven into bank deposits.