* Political worries spur safe-haven demand for bullion
* Spot gold hits 3-month high of $1,244.67
* SPDR Gold holdings up for fifth straight session (Updates prices; adds comment, second byline)
By Marcy Nicholson and Maytaal Angel
Feb 8 (Reuters) - Gold rose to a three-month peak on Wednesday, as political risks posed by elections in Europe and worries over U.S. President Donald Trump's policies stoked safe haven demand.
Investors are concerned about the strong showing in the French presidential race of far-right candidate Marine Le Pen, who has promised to take France out of the euro zone and to hold a referendum on European Union membership.
The euro EUR= recovered after falling against the dollar on political risks, as the single currency gained from investors' wariness over Trump's protectionism and immigration policy and his hints that he would prefer a weaker dollar.
"There's underlying demand for gold as a hedge against political uncertainties on both sides of the Atlantic," said Ole Hanson, head of commodity strategy at Saxo Bank.
"Retracements have been quite shallow the past couple of weeks, especially the signal that gold wasn't going down when the dollar started going up," he added.
Spot gold XAU= rose 0.5 percent at $1,239.27 an ounce by 2:45 p.m. EST (1945 GMT), after rising to its highest since Nov. 11 at $1,244.67.
"This discussion over the (U.S.) immigration ban and the court fight is leaving investors in a realm of uncertainty which is also leaving room for them to take on new gold positions or to reduce their shorts," said Rob Haworth, senior investment strategist for U.S. Bank Wealth management in Seattle.
U.S. gold futures GCcv1 settled up 0.3 percent at $1,239.50.
Indicating heightened worries over the French elections, the gap between French 10-year government bond yields and their low-risk German equivalents was at its widest since November 2012.
"Gold prices will continue to rise until mid-February on uncertainties in the U.S. and Europe. But once January CPI data is released, it will give an idea about the possibility of a rate hike in March," said Jiang Shu, chief analyst at Shandong Gold Group.
Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose for a fifth straight session on Tuesday. GOL/ETF
Spot silver XAG= rose 0.3 percent to $17.76 an ounce, after marking its highest since Nov. 11 at $17.87.
Platinum XPT= rose 1.2 percent to $1,012.24, after touching its highest since Nov. 9 at $1,019.20.
Upside potential for platinum is limited due to an envisaged decline in investment demand from Japan, Commerzbank (DE:CBKG) said in a report. "Platinum should be lent buoyancy primarily by the rise in the gold price that we are forecasting," it said
Palladium XPD= rose 1.1 percent to $768.70.