The World Gold Council says gold demand in China is likely to top a record 200 metric tons this year.
Gold investment demand surged 70 percent last year to an all-time high of 187 tons.
India is currently the world's top bullion buyer, followed by China.
The two countries accounted for over a half of world gold consumption in the second quarter.
Gold futures have surged almost 30 percent so far this year, as the debt concerns in Europe and the U.S. have boosted demand for the safe-haven.
