"Gold is close to its recent multi-month high despite the strong dollar, due to an increase in volatility on the equity markets and more uneasiness on the political front, which is supporting the search for safe-haven assets," said Eugen Weinberg, head of commodity research at Commerzbank.
Spot gold slipped 0.09 percent to $1,237.61 per ounce, while U.S. gold futures dropped $2.40 to settle at $1,237.80.
Despite losses today, gold is on track for a third straight week of gains, rising about 7.5 percent in 2017.
Concern over Trump's policies, as well as elections in the Netherlands, France and Germany this year, fueled gold's rise to a peak of $1,244.67 on Feb. 8, the strongest in nearly three months.
"Dealers are extremely cautious about running the market higher as the March Fed rate hike debate will likely play out for the foreseeable future," said Stephen Innes, senior trader at OANDA.
Prospects of a stronger dollar and U.S. Treasury yields after Fed Chair Janet Yellen said U.S. interest rates may need to be raised in March had dragged gold to $1,216.41 on Wednesday, its lowest since Feb. 3.