Dubai, August 20:

Global demand for gold jewellery in the second quarter of 2007 has reached a record $14.5 billion mark, 37 per cent more than the corresp-onding period of 2006, accor-ding to figures released by the World Gold Council (WGC).

According to WGC, identifiable demand of gold has made a substantial recovery from the impact of the volatile prices experienced

in 2006, WAM news agency reported.

Total demand has reached 922.0 tonnes, indicating 19 percent increase in tonnage terms as compared to the second quarter of 2006.

Demand for gold in the Middle East and Gulf countries has increased by 21 percent, according to the figures. In China, strong economic growth, reduced price volatility and New Year festival saw gold demand increasing by 32 percent in tonnage terms as compared to year-earlier. Total gold demand in China in the second quarter was 75.9 tonnes.

In US, third in the world in gold demand, the demand was 4 percent lower than a year earlier in tonnage terms, equivalent to a 2 percent rise in dollar terms. In Russia, jewellery demand has grown steadily over recent years, consumption increased by 27 percent to 20.3 tonnes compared to the second quarter last year.