Gold jumped 1 percent on Monday to its highest in nearly three months as worries about the political landscape in the United States and Europe, and a subdued dollar, reinforced investor interest.
Spot gold was up 1.1 percent at $1,233.01 an ounce by 3:02 p.m. EST (2002 GMT), after touching $1,233.80 -- a level last reached on Nov. 11. U.S. gold futures settled up 0.9 percent at $1,232.10.
Political uncertainty in the United States has been fueled by President Donald Trump's policies, the most controversial of which is a temporary ban on entry by people from seven mostly Muslim countries. A U.S. judge put a nationwide block on Trump's order on Friday.
"The initial euphoria of the Trump presidency seems to be fading and the elections in Europe are making people nervous. The uncertainty does mean upside for prices," said Warren Patterson, commodities strategist at ING.
"Since the start of the year we've seen the dollar consistently weaker, but physical demand from (top consumers) China and India is still weak and a negative for gold."
Elections in the Netherlands, France and Germany this year are also adding to jitters.
"After several unsuccessful attempts, gold has finally broken the $1,220 resistance level. While it holds above this level, the path of least resistance would be to the upside now," said Fawad Razaqzada, technical analyst for Forex.com.
"Consequently, gold could rise towards the next resistance level at $1,250 next."
China's net gold imports in December, at 51.51 tonnes, were down 60 percent from December 2015.
Meanwhile, gold demand in India fell 21.2 percent in 2016 from the previous year as new rules dampened demand.
The dollar's value against a basket of currencies has fallen more than 3 percent since Jan. 3.
That is partly because of expectations that the U.S. central bank will wait to see what happens on the political and economic fronts after Friday's monthly jobs report showed wages barely rose.
Gold's solid showing so far this year ... is mostly attributable to a weaker dollar and last week's standoffish Federal Reserve statement with regard to when it would next move on rates," INTL FCStone analyst Edward Meir said in a note.
"Geopolitical concerns will now be magnified by the Trump administration's more aggressive tone in the foreign policy arena and trade will also remain a key flash point."
Spot silver rose 1.5 percent to $17.72 an ounce, while platinum gained 1 percent at $1,012.80, a three-month high.
Palladium added 3.3 percent to $770.75, the highest since Jan. 25.