Gold purchases in China skyrocketed by nearly 54 percent in the first half of 2013, despite contracting demand elsewhere in the world.

The country's gold consumption reached 706.36 metric tons in the first half, up 53.7 percent year on year, the China Gold Association said on August 12.

The strong growth was mainly supported by gold-bar purchases, which surged 87 percent to 278.81 tons, while jewelry gained 44 percent to 383.86 tons.

Industrial use, however, shrank by 1.6 percent.

China was the world's second largest consumer of gold last year, and some analysts say the country may overtake India to claim the top spot this year.