"Gold is capped by the likelihood that U.S. monetary policy will be tighter at some stage, potentially in March," said Societe Generale analyst Robin Bhar.
"There is a lot of political uncertainty, there are safe-haven flows going into gold."
Bhar added that gold is also an investment hedge against corrections in what look to be overvalued equities.
Investor demand for gold can be seen in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, holdings of which have risen by more than 5 percent to 27.044 million ounces since Jan. 31.
Major U.S. indices — the Dow Jones Industrial Average and the S&P 500 — have hit consecutive record highs in recent days.
"Gold's resilience is all the more impressive considering U.S. equities are setting record after record, while the dollar is also fairly strong," said INTL FCStone analyst Edward Meir.
Meir added that support comes from a "myriad political and economic uncertainties" that lie ahead in 2017.