Gold hit its highest in about 3-1/2-months on Friday, on a weaker dollar and as uncertainties surrounding US President Donald Trump's policies and elections in Europe fueled safe-haven demand. Spot gold was up 0.4 percent at $1,254.10 per ounce at 0809 GMT, after touching its highest since November 11 at $1,254.31 earlier in the session.
The dollar index was down 0.2 percent at 100.87. US gold futures edged up 0.3 percent to $1,255. Tempered expectations of a US rate hike in March following the release of the minutes from the US Federal Reserve's last meeting were also seen supporting the bullion.
"Even in the event of a rate increase, we doubt the precious metal will lose much ground ahead of the key presidential elections in France in April, coupled with the Washington gridlock that seems to be calcifying with greater intensity after each passing day," said INTL FCStone analyst Edward Meir.
Political uncertainties have triggered continuous inflows into gold exchange traded funds (ETFs), which seems to be the main driver for gold prices at the moment, Fritsch added. Holdings of the largest gold-backed ETF, New York's SPDR Gold Trust, have risen over 5 percent this month.