Investment demand for gold remained strong in the second quarter 2009, rising 46% on a year earlier levels, but overall demand was hit by weak economic conditions and the high price of the commodity, according to the World Gold Council.

Although gold demand remains very high on a historical basis, total demand in the second quarter was down 9% on the levels of a year earlier, a 6% decline in dollar-value terms to $21.3bn. Although overall demand for gold remains high on a historical basis, at $21.3bn, during the last quarter demand for gold dropped 9% on the levels of a year earlier, according to the new report out today.