Gold holds above 6-month low as dollar stalls

Gold prices rose in European trade on Monday, holding above six-month lows hit on Friday as dollar stalls against a basket of major rivals. 

Gold rose 0.3% as of 10:50 GMT to $1,280.95 an ounce from the opening of $1,277.45, with an intraday high at $1,282.48, and a low at $1,277.45. 

Gold lost 1.7% on Friday, the first loss in three days and the largest since May 15 on profit-taking away from four-week highs at $1,309.39, and amid prospects of global policy tightening. 

Gold lost 1.5% last week, the second loss in the last three weeks on dollar's strength and weak investment demand. 

The Federal Reserve raised interest rates by 25 basis points to below 2%,while paving the way for several more hikes this year. 

The European Central Bank announced an end to the bonds purchase program by next December, while basing interest rate decisions on economic data in the euro zone. 

The dollar index fell 0.1% on Monday for the second day away from eleven-month highs at 95.13, as the US dollar stalls against a basket of major rivals, underpinning dollar's dominated commodity futures. 

Gold holdings at the SPDR Gold Trust, the world's largest gold-backed trust fund, remained unchanged on Friday for the fifth straight session at 828.76 tonnes, the lowest since February 16.