I just thought that going by your comment on Sat, Jan 27, 5:29 PM that you would use libdns, instead of resolv.conf directly. Maybe I understood that comment wrong.
Jan 27 2018
Note that it works as expected if I symlink /run/systemd/resolve/stub-resolv.conf to /etc/resolv.conf. Other programs appear to not require this change.
I can reproduce this issue with gpg 2.2.4, systemd-resolved and Arch Linux. Unlike the original reporter, I do not have 127.0.0.1 in my /etc/resolv.conf. I do however have it in /etc/hosts.