Gold rebounded slightly on Monday from a one-percent fall in the previous session, after China further tightened its monetary policy to curb inflation, and holdings in the gold-backed exchange-traded fund continued falling.

FUNDAMENTALS

* Spot gold gained 0.2 percent at $1,363.05 an ounce by 0022 GMT, after falling to a one-week low of $1,354.99 in the previous session.

* U.S. gold futures fell 1.8 percent to $1,362.3.

* China's central bank raised lenders' required reserves on Friday for the fourth time in just over two months, stepping up the fight against inflation it has vowed will be a top priority for the year.

* The euro zone faces short-term price pressures which may linger, the European Central Bank said on Thursday, showing it could raise interest rates to contain inflation even while the bloc is gripped by a debt crisis.

* The U.S. economy still needs support from the Federal Reserve, even if growth prospects appear firmer, top Fed officials said on Friday.

* Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,259.325 tones by Jan 14 from 1,265.093 tones on Jan 13. They had fallen about one percent over the past week.

MARKET NEWS

* The S&P 500 ended a seventh straight week of gains with a bank-led rally amid healthy volume after encouraging financial results from JPMorgan.

* The dollar index .DXY was steady on Monday, after falling to a two-week low on Friday on disappointing U.S. consumer sentiment data.

DATA/EVENTS

Japan Consumer confid. index

OPEC Monthly Report U.S. market holiday

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