For the past year, gold jewellery has been in very high demand across Europe and the rest of the world.
According to a report published by the BBC, the demand for gold for the rest of the year will determine the price gold jewellery and watches will be sold at.
The World Gold Council predicts that the demand for the precious metal will continue to soar throughout the rest of the year just as it has done throughout the global economic recession, when demand for other items and services have fallen.
Demand has continued to rise in Europe by up to 115 per cent. This now means that Europe will account for over a third of global demand for gold. This will undoubtedly have an impact on the price of gold jewellery.
While the demand for gold has risen in Europe, the BBC article reveals that the demand in India has fallen slightly by 2 per cent compare to the same time last year. On the other hand, China has seen an increase in demand of 5 per cent rising to 75.4 tonnes.
There is also a chance that China may lift restrictions on its gold market too which could mean an even greater demand for gold and a further impact on the prices of mass produced gold items.
Speaking to the BBC, a spokesperson for the World Gold Council said: It can be argued that, while many of these buyers undoubtedly turned to gold as a flight to quality their return to gold has proved resilient, even as a sense of optimism has started to pervade some sectors of the investor community.
With this growing demand for gold in Europe and in other parts of the world, it has been reported that the price of an ounce of the precious metal has now reached an all time record price of $1,261.