Despite a third quarter that saw global gold demand shrink 21 percent year-on-year to 868.5 metric tons, China's demand for gold jewelry jumped 29 percent year-on-year in the third quarter amid price fluctuations for the precious metal, the World Gold Council reported Thursday.

China was the world's top gold consumer in the third quarter, surpassing India, historically the world's largest gold consumer, the WGC said.

A number of factors contributed to China's growing appetite for gold jewelry, including lower gold prices, which made it more affordable for consumers; improving economic conditions; and strong brand promotion within the jewelry sector, said Cao Xiaorui, director of jewelry, Far East, for the WGC.