Demand from global investors reached 230 tons during the three months to the end of September, up from 181 tons a year earlier, new data shows.

Gold demand rose 8 per cent year-on-year to 1,121 tons in the third quarter as investors rallied around the precious metal and consumers took advantage of lower prices, according to the World Gold Council.

Global investment demand grew by 27 per cent to 230 tons over the period, largely thanks to a 207 per cent surge in bar and coin demand in the US. China saw 70 per cent increase in demand while Europe was up 35 per cent.

“Purchases by the central banks almost equaled the Q3 2014 record as gold’s diversification benefits continue to be recognized. The increased transparency that comes from the publication of China’s reserve data is a welcome addition to the market – although Russia still remains the most significant buyer,” said Alistair Hewitt, head of market intelligence at the World Gold Council.

Meanwhile, global demand for jewelry was up 6 per cent year-on-year at 632 tons. With the wedding season approaching in India, demand in the country grew by 15 per cent to 211 tons while China logged a 4 per cent jump to 188 tons.

“China and India remain the dominant figures in the global gold market, accounting for close to 45 per cent of total demand,” said Hewitt. “There were significant gains in bar and coin demand in China and across Europe, but it was in the US where we saw the most dramatic growth, with US Mint Eagle sales reaching their highest level since Q2 2010."