--Comex August gold up 0.5% to $1,328.70/oz --Gold prices march higher as investors look ahead to FOMC meeting, payrolls data --Gold on track for best month since January 2012 By Tatyana Shumsky NEW YORK--Gold futures were higher Monday as bearish investors continued to close out their wagers on lower gold prices ahead of the Federal Reserve meeting on monetary policy later this week. The most actively traded contract, for August delivery, was recently up $7.20, or 0.5%, at $1,328.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Gold is on track for its best month since January 2012 as investors who profited from steep losses in April, May and June exit those bets to lock in their gains. Friday afternoon data from the Commodity Futures Trading Commission showed speculative investors have been raising bullish bets--and reducing bearish wagers--consistently throughout July. Some gold traders opted to reduce bets on lower gold prices as they look ahead to the Federal Open Market Committee's monetary policy meeting July 30-31. The FOMC is likely to weigh the longevity of the Fed's $85-billion-a-month bond-purchasing program and the timing and pace of removing that stimulus. "Most expect the Fed will leave its monetary policy unchanged and continue to lean well to the dovish side at this week's meeting," said Jim Wyckoff, senior analyst with Kitco.com, in a note to clients. The Fed's bond purchases have been a source of support for gold prices, as worries that the stimulus measures would spark inflation or weaken the dollar led some traders to buy precious metals as a hedge. Investors are also looking ahead to U.S. non-farm payrolls data, due out Friday. Fed officials have previously signaled that labor-market data are key for their policy decisions. "We believe a soft employment report would amplify the more dovish sentiment on tapering and sustain the cautious rebound in gold prices," analysts at Deutsche Bank said in a note to clients.

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