UPDATE 1-Gold rebounds after sell-off, investors buy

(Adds comments, updates prices)

By Risa Maeda

TOKYO, April 21 (Reuters) - Gold rebounded on Monday after a sell-off the previous session, bolstered by light buying on dips by Japanese investors.

Spot gold <XAU=> was at $921.00/922.00 per ounce as of 0316 GMT after falling more than $20 to $916.40/917.20 late in New York on Friday, hurt by a rising dollar and an upbeat U.S. stock market.

Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) fuelled a rally on Wall Street on Friday as investors took comfort that the No.1 U.S. bank was taking aggressive steps to resolve credit problems that led to its latest quarterly loss.

Last week, gold climbed as high as $952.60, the highest level since March 28. Gold is traditionally seen as a safe-haven asset when volatility rises in other markets.

"Gold's charm as a hedging asset is declining as concerns about a credit crisis in the U.S. are waning," said Hitoshi Inagawa, senior manager at Tokyo-based commodity brokerage Yutaka Shoji Co's corporate investment and service division.

"But some investors resumed buying, resulting in the resilience in the Tokyo market," he said.

The most active U.S. gold futures contract for June delivery GCM8 on the COMEX division of the New York Mercantile Exchange also bounced back in Asia, rising $9.2, or 1 percent, to $924.40 per ounce.