India became the world's largest gold consumer in 2014

India edged out China as the second largest consumer of gold in the world during the year. GFMS analysts said in a report that global gold demand fell sharply last year, and it is predicted that world gold prices are unlikely to rise in 2015, after two consecutive years of declines. Meanwhile, Indian jewelry demand rose 14 percent to 690 tonnes. The country overtook China to become the world's largest jewelry manufacturer.

Analysts report that global gold demand collapsed 19 percent in 2014. In addition, global jewelry demand fell 11 percent. Global mine production jumped nearly 2 percent to a record 3,109 tonnes of gold per year. At the same time, the supply of scrap gold decreased by 11 percent.

China's gold demand has plummeted by almost one third from a record 1,000 tons in 2013 to a four-year low of 866 tons in 2014. At the same time, Chinese jewelry demand increased by 33 percent to 608 tons. Chinese gold demand is expected to improve in 2015, but only an extraordinary turn of events could push it to record levels in 2013.

The precious metal may not attract fresh retail investment despite a price tag of around $ 1,180 an ounce earlier this year. Gold prices are likely to hover around $ 1,170 an ounce on average throughout 2015, according to GFMS. This year, the market should mark the lowest point in the price of gold and receive a reversal signal.