(Yicai Global) Nov. 10 -- Demand for gold fell to 915 tons in the third quarter, 9 percent less than the same period a year ago, but retail investment in China is on the up, Futures Daily reported, quoting the World Gold Council's Gold Demand Trends Report.

Despite the sluggish global demand, the report indicates that investment in gold bars and coins increased 17 percent annually, mainly driven by China. The world's second largest economy made up a third of the consumer market in the last quarter, with investors from the mainland buying gold as the price declined.

"In the third quarter, China made the biggest annual growth contribution to the global market of gold bars and coins," said Wang Lixin, managing director of the World Gold Council in China. "Gold demand in China rose by 57 percent to 64.3 tons. Young consumers, particularly Millennials, are becoming a driving force in gold consumption. Though as consumers they are still attracted to the happiness and good fortune that gold symbolizes, they are becoming more attracted by gold product with modern, innovative designs, instead of pursuing pure gold jewelry. The market needs to fully understand and follow this trend to facilitate an upgrade of the whole industry."

The decrease in aggregate demand is mainly down to declining demand for gold jewelry and slow inflows of gold exchange-traded funds, the council said.

Global aggregate demand for gold jewelry still lingers below the long-term average, falling to 479 tons in the third quarter to mark the lowest ever in terms of third-quarter demand. Weak demand in India is a key reason behind the fall.

Gold exchange-traded fund inflows increased by 18 tons, much less than the 144 tons in the same period of 2016, the report shows. Though investors still see gold as a safe asset, they are paying more attention to the thriving stock market due to a lack of stimulus in the commodity.

Central banks' demand for gold rose by 25 percent on the year to 111 tons, remaining at a healthy level.

Gold supply in the quarter was 1,146 tons, an annual decrease of 2 percent from 1,168 tons last year, the report added.