A record $11.4bn was spent on gold jewellery by consumers in the second quarter, but underlying demand was hit by an increase in price volatility, according to the World Gold Council.

Gold hit a 26-year high of $730 a troy ounce in May but only held above the $700 level for three trading sessions, and the second quarter was marked by a sharp increase in volatility. Prices varied across a $165 an ounce range.