Demand for gold eased 11 per cent globally in 2009 due to weaker demand from the industrial and jewellery segment, the World Gold Council revealed on Wednesday.

Global demand for the precious metal slumped 24 per cent to 819.7 tonnes in the last quarter itself as compared to the year-ago period. Still, it was higher than the demand witnessed in the two quarters it followed.

However, demand for the yellow metal as an investment tool is expected to remain strong this year, the council said in its outlook. Amid uncertainties over currency values and persistent inflation gold remained a favourite investment tool for the investors.

Demand for gold exchange traded funds rose a whopping 85 per cent last year. Helped by strong buying buy investors the bullion climbed close to 35 per cent last year, highest for a year in the last three decades.

Meanwhile, India continues to be the largest consumer of the precious metal with an annual demand of 480 tonnes in 2009. However, the country also faced a fall 33 per cent fall in demand as jewellery lovers restrained themselves from buying at such high price.

Gold touched Rs. 18, 000 for 10gms last year.