Gold demand hit a five-year low last year as buying of jewellery, coins and bars failed to keep pace with 2013's elevated levels, particularly in major consumer China, the World Gold Council said yesterday.
But the declining trend in demand, which has fallen every year since its 2011 peak, was likely to turn around this year, said Marcus Grubb, the council's managing director for investment.
"We expect the market to come in somewhere between 4,100 and 4,200 tonnes in [2015]," he said. "We see Indian demand rising, and I think you'll see a big improvement in China, too."
The drop in demand last year was limited by slower liquidation of bullion-backed funds, an uptick in official-sector demand and a recovery in Indian gold jewellery buying.
World gold demand fell 4 per cent to 3,924 tonnes last year, the lowest annual total since 2009, according to council data.
