With average prices materially higher than the same quarter of last year, this move equated to a value of $59.7 billion.

“Demand for gold in the jewellery and technology sectors declined in response to dollar prices that were, on average over the quarter, 22 per cent above year-earlier levels,” the WGC said in a regular report.

“Growth in the investment sector was led by an increase in demand for ETFs and similar products, although demand for gold bars and coins moderated in comparison with the exceptionally strong result in the first quarter of 2011,” it said. Central banks, it added, made a less positive contribution to demand than a year ago.

In China, demand rose to record levels, with consumer demand up 10 per cent to reach a quarterly high of 255.2 tonnes.