Global spot gold prices rose as much as almost 5% immediately after the results of Britain's Brexit referendum last week to touch $US1357 ($NZ1916) on Friday, but eased to trade around $US1313 yesterday.
Gold is a historical refuge for investors in times of turmoil and as a hedge against inflation.
Craigs Investment Partners broker Peter McIntyre said the unexpected Brexit vote would likely heighten investor risk perceptions for some time, with uncertainty around economic growth and also central bank policy-making.
The gold price had lifted almost 5%, while a weakening local currency meant there was an 8% increase in the Australian dollar gold price, touching $A1800 ($NZ1880) an ounce.
"The recent sharp move in gold highlights how complacent the global market was about the risk of a 'leave' vote in the UK referendum,'' he said.
The surprise exit result and potential global market implications would dent confidence and reset the bar for gold, Mr McIntyre said.
"Simply put, we think investors will now be more willing to pay a premium for an insurance policy.''
He said the ideal economic and financial conditions for gold were negative or falling interest rate expectations, rising risks, a declining US dollar and falling growth expectations.
"Since the Brexit vote, three of those four drivers have intensified, which should provide a supportive environment for gold,'' Mr McIntyre said.
"The next event which could unsettle markets significantly is if Trump was elected [US president],'' he said.
While the probability of Donald Trump winning the US presidential election were "not in his favour'', Mr McIntyre noted no-one had picked that the majority of Britons would decide to leave the European Union.
