Switzerland will be voting on a new referendum next month to increase its central bank bullion reserves in an attempt to support the franc currency, potentially lifting gold-related exchange traded funds.

Over the past three months, the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) have all declined about 7.0%.

Meanwhile, gold holdings in these physically backed ETFs have steadily diminished. [Despite Bullion Gains, Gold ETF Assets Drop]

COMEX gold futures now trade around $1,199 per ounce, touching a three-week low Thursday.

However, the bullion market could turn around if the Swiss National Bank is forced to increase its gold reserves, which would require the central bank to purchase just over half the world’s annual mine supply.

Ahead of the referendum on November 30, recent polls reveal a lead for the Yes campaign that would force the SNB to hold at least 20% of its reserves in gold, up from its current 7% in reserves, reports Henry Sanderson for Financial Times.

Moreover, a yes vote on the upcoming referendum would restrict the central bank from selling gold under any circumstance, which the SNB argues will diminish its ability to enact monetary policies.

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