Uncertainty over Trump's policies sent the dollar to a 1-1/2 month low against a basket of currencies, while bond yields slipped from recent highs.
A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion.
Spot gold was up 0.56 percent at $1,216.33 an ounce. It earlier touched $1,219.43, its highest since Nov. 22. U.S. gold futures settled $10.70 higher at $1,215.60.
"The story is one of a weaker dollar and political uncertainty," said Danske Bank analyst Jens Pedersen.
Gold finished last week up 1 percent for its fourth straight week of gains and longest consecutive string of weekly increases since July.
Underscoring the bullish view, data from the U.S. Commodity Futures Trading Commission (CFTC) showed that speculators raised their net long positions in COMEX gold contracts for a second week in the week to Jan. 17.
"Momentum indicators are biased to the upside," said ScotiaMocatta analysts, targeting $1,255.70 an ounce.
But gold faces resistance, at $1,219, that it may struggle to break, Reuters' technical analysis shows.
And despite his protectionist measures, Trump's plans for government spending, tax cuts and deregulation would be likely o boost the dollar and U.S. stocks if enacted.
"That is going to take some of the wind out of gold as an alternative investment or as a risk hedge," said Mitsubishi analyst Jonathan Butler.
Trump said on Monday that he believed that his administration could cut U.S. regulations governing companies by 75 percent or more.
If Trump's policies deliver faster economic growth, the U.S. Federal Reserve could raise interest rates this year at a faster rate than investors expect, said Butler, leading to higher bond yields that would dampen demand for gold.
Among other precious metals, palladium was down 1.57 percent at $776.00, having earlier touched $795.60, its highest since May 2015.