Gold prices on Thursday held near eight-month highs hit in the previous session, as the dollar weakened after the US Federal Reserve paused its monetary tightening cycle, putting bullion on course for its fourth straight monthly gain. Spot gold was steady at $1,319.54 per ounce by 0653 GMT. Prices rose to their highest since May 11 at $1,323.34 on Wednesday. US gold futures were up 0.8 percent at $1,318.60 per ounce.

Spot gold has risen 2.8 percent so far this month. "Gold is getting a double whammy from a dovish Fed and US-China trade talks," said Jeffrey Halley, senior market analyst, OANDA, adding that prices will firm around $1,300 levels. Underscoring investor interest in gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were at their highest since June. SPDR gold holdings have climbed 4.6 percent so far this month, the biggest monthly gain since September 2017.

Copyright Reuters, 2019