by Mike Maharrey, Gold Seek:

Gold demand was up 4 percent to 1,258 tons in the second quarter, the highest level on record since the World Gold Council started compiling data in 2000.

Demand for gold was strong in the second quarter despite record gold prices.

The LBMA gold price averaged a record of $2,338 per ounce in Q2. That was 18 percent higher year-on-year and 13 percent quarter-on-quarter.

Central bank and over-the-counter (OTC) buying offset a sharp drop in gold jewelry demand.