The Swiss franc, which has been in a steep incline against the dollar of late, may be being used as a proxy for gold, according to Goldman Sachs.

Gold has rallied in recent weeks following the spiking of geopolitical tensions in the Middle East, instigated by the U.S. killing of top Iranian military commander Qasem Soleimani, and is widely regarded by investors as a "safe haven" amid turbulent periods.

But where gold has gone, the Swiss franc has followed, Goldman Sachs Co-Head of Global Foreign Exchange Zach Pandl highlighted in a note Sunday. The franc was trading at around $1.03 by mid-morning on Monday.

Gold recently soared to six and a half-year highs, and spot gold prices were hovering just below $1,560 per troy ounce on Monday.

"While the drivers of recent performance are not entirely clear-cut, we believe the surge in geopolitical tensions may have motivated investor demand for CHF, much as it has driven demand for gold," Pandl said.