This week, gold has continued to rack up significant moves as U.K. prime minister David Cameron set a date for the referendum on the U.K's membership of the European Union. The pound slumped to a near seven-year low against the dollar after the announcement.
Spot gold was up around 0.4 percent to $1,232 an ounce on Thursday after earlier falling as much as 0.7 percent. On Wednesday, gold had climbed 2.1 percent to $1,252.91 as lower oil prices dragged down stocks. The metal hit a one-year top of $1,260.60 two weeks ago.
"Given that the only significant development in the currency markets (other than the impact of renewed concerns in the oil market) has been the referendum related concerns surrounding the pound it seems reasonable to conclude that the rally in gold prices is, at least in part, related to this. This is an interesting development as it revives memories of how gold performed during one of the more notable European currency crises of the early 1990s," Derrick said.
Gold rallied in 1993 after the U.K. pulled out of European system known as the Exchange Rate Mechanism or ERM, as new pressures on the system began to emerge.
In May, gold powered up to around $385 per troy ounce, from a low in March of $326, before a lull set in.