Total gold demand for Q2 was down 7% from 2011 levels, according to the World Gold Council’s quarterly report, but the average price during the period was $1,609.49 per ounce, up 7% on the average price a year earlier.
All elements of investment declined the WGC said, apart from the official coins category which was buoyed by strong demand in one or two key countries.
Gold ETFs saw demand flatten in the second quarter as new demand was marginally outweighed by selling.
The WGC said: “The lacklustre net figure was reflective of the directionless price action in gold, which encouraged profit-taking and bargain-hunting in equal measure.
But demand in Europe bucked the trend with a year-on-year increase of 15% in the second quarter suggesting the lack of alternative safe havens and continued uneasiness around the eurozone crisis was driving investor sentiment in the yellow stuff.
