Driven by a surge in over-the-counter trading and continued buying by central banks around the world, global gold demand grew 4 per cent year-on-year to 1,258 tonnes in the second quarter, the strongest second-quarter demand record on record.

According to the World Gold Council's latest Global Gold Demand Trends Report, the price of gold hit a record high of $2,427 (S $3,220) per annum in the second quarter of this year, with an average price of $2,338 per annum, up 18% year-on-year.

Global demand for gold jewellery fell 19 per cent year-on-year to 391 tonnes in the second quarter due to record high prices. However, due to the strong performance of the first quarter, overall gold jewellery demand remained resilient in the first half of this year.