Low gold prices generated a surge in global jewelry demand to 575.5 metric tons, a five-year high, in the second quarter of 2013, according to data from the World Gold Council released on Thursday.

It revealed the average gold price for the second quarter of 2013 was $1,415 an ounce, down 12 percent year-on-year.

Analysts said that in China gold remains a compelling investment because the poorly performing stock market does not serve as an attractive investment option and concerns linger over the possibility of a domestic credit crisis.