A study by GFMS Metals Research and Forecasts team at Thomson Reuters, about global gold jewellery consumption, revealed that the said consumption dropped 6.7 percent (on y-o-y basis) to 527 tonnes in Q1 2015, reports add. This is the lowest level since the corresponding quarter in 2012. The drop was attributed to the behaviour of deferring purchases in 'price sensitive markets', reports say/

The consultancy’s report was its first Quarterly Update and Outlook 2015 of its annual Gold Survey.

Market-wise, in the said first quarter of 2015, India’s jewellery demand rose 2 percent (on y-o-y basis) to 148.5 tonnes and investment demand dropped 31 percent or its lowest since 2009. Gross imports rose 87.2 percent (on y-o-y basis) to 216.2 tonnes, reports add.

In China, a major competing market for India, gold purchases slimmed as stock markets strengthened. Jewellery purchases dipped 12.4 percent on y-o-y basis to 190.9 tonnes, while retail investment dropped 10.5 percent, to 55.9 tonnes, or its weakest first quarter level since 2010. The physical gold demand in US touched 38.0 tonnes or 6 percent lower than the same period last year and the lowest level during a first quarter since 2007.

According to the consultancy, its assessment of an annual average price forecast stands at $1,170 an ounce, as per reports.