The World Gold Council said the dollar demand for gold remained above the $100bn mark in 2009 for the second successive year despite global demand falling by 11% to 3,386t.
In its Gold Demand Trends report, the council said demand for gold rose by 2.5% in the last quarter of 2009 as compared to the previous quarter.
When compared to the last quarter results of 2008, gold demand dropped by 24% and demand for gold jewellery also fell by 8%.
There was a 49% rise in jewellery demand from the first quarter of 2009 - a rise largely driven by a rebound in the Indian market, which maintained its position as the world's largest gold consumer.
Identifiable gold investment in 2009 was up 7% relative to 2008 but down 50% when compared to the peak levels reached during the final quarter of 2008.
The industrial demand for gold achieved its third consecutive quarter-on-quarter improvement in the fourth quarter and its first annual gain in more than two years along with an 11% higher demand from the last three months of 2008.
ETF demand in 2009 rose by 85% than the previous year, equivalent to an inflow of $17.7bn, although the demand was 67% lower for the fourth quarter than during the same period in 2008.
China was the only jewellery gold market to grow by 6% in 2009 and also the only non-western country to record a growth of 22% in investment demand for the same year.