Global demand for gold reached 17.4 billion U.S. dollars in the first quarter of 2007, up 22 percent from the same period last year in terms of value, or four percent in terms of quantity, a report released by the World Gold Council (WGC) said here Thursday.

Jewellery consumption accounted for 12 billion dollars, more than double the demand of four years ago, while industrial and dental consumption saw an increase of one percent in terms of quantity or 18 percent in value from the first quarter of 2006.

China's jewellery consumption of gold rose by 27 percent in quantity, or 44 percent in value, driven by strong demand during Chinese New Year in mid-February, the WGC said.

Global gold supply remained tight during the quarter, falling two percent from already constrained supply in the first quarter of 2006, while prices remained stable.