High gold prices could reduce jewelry demand by 21% this year according to a report published today, according to the Financial Times.

Virtual Metals Research & Consulting and Fortis Bank, who conduct the analysis twice a year, also predicted that the gold market could see surpluses if prices continue at their current high levels.

Gold prices approached a 25-year high today, closing at $589.25 a troy ounce. Investors forecasted that gold would reach $600 soon.

The Times reports that jewelry accounts for roughly 75% of demand for gold.