Global gold demand plunges to 6-year low

World demand for gold has dropped 12 percent, falling to its lowest point in six years, according to the World Gold Council.

The demand for gold slid to 914.9 tons in the period from March to June this year, compared to the 1,038 tons during the same period last year. The price of gold has fallen more than 40 percent since it peaked at $1,900 per ounce in 2011.

Demand for jewelry, which makes up about 60 percent of global gold consumption, fell by 14 percent in the second quarter to 513.5 tons, from 594.5 tons a year ago.

The World Gold Council says the main reason for the trend is falling demand in India and China. These two countries account for roughly half global gold consumption. 

Gold demand in India has dropped 25 percent, to 154.4 tons in the second quarter from 204.9 tons the year before. Jewelry purchases slid from 152.6 tons last year to 118 tons.

READ MORE: Gold to hit 6yr low by year end – Bloomberg

China’s total gold consumption fell 3 percent to 216.5 tons compared with 224.1 tons in 2014, while demand for jewelry slid 5 percent to 174.4 tons, from 184.6 tons last year.

India and China are predicted to consume a total of between 900 to 1,000 tons this year, according to the World Gold Council.