LONDON (Reuters) - Gold erased Monday's gains in afternoon trading in Europe, after a bout of profit-taking emerged as prices headed towards last week's record highs but were stopped short by the dollar gaining ground. Spot gold was last at $1,249.05 an ounce by 1453 GMT, down from $1,253.40 in late trade in New York on Friday, having risen earlier to a session peak of $1,262.45 an ounce, just shy of last Monday's record of $1,264.90. "These are high prices to buy gold at," said one trader. "Technically, the upward trend is intact, but when you near record highs, trade is always jittery," the trader added. Gold has traded in tandem with the dollar for much of the past month, but its traditional inverse correlation to the U.S. currency reasserted itself on Monday, putting gold under pressure as the greenback rose against the euro.

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