According to the World Gold Council (WGC), the demand for the yellow metal in the Chinese market may zoom around 30% in 2012 as growing incomes increase consumption, assisting the nation topple the country as the globe’s biggest bullion market on an annual basis, according to the World Gold Council.

Albert Cheng, Far East managing director at the producer-funded group, stated that the demand, which hit an all-time high during the first quarter, may grow to between 900 metric tons and 1,000 tons in the existing year as against 769.8 tons in the last year.

Indian usage may go down to 800 tons to 900 tons as against 933.4 tons.

Positive demand in the globe’s biggest gold fabricator may help arrest a decline in rates that have dropped down from 2011’s record as capitalists favored the dollar amid worry that Greece may quit the euro.

Worldwide gold demand dropped 4.6% to 1,097.6 tons during the first quarterly period.

“We are confident China will become the largest source of demand for gold this year,” Cheng stated in Singapore, restating a council forecast made earlier in 2012. “Over the next two to five years, China and India will go neck to neck and may account for more than 50 percent of world demand.”

Demand in the Chinese market summated 255.2 tons during the three months to March 31 as against 232.5 tons a year earlier.

Investment demand surged 13%, whereas jewelry demand augmented 7.9% to 156.6 tons, making China the globe’s biggest jewelry market for a third quarter.