HONG KONG (MarketWatch) — China is on track to overtake India as the world’s biggest consumer of gold in 2012, as demand for investment and jewelry fuel growth, whereas India’s consumption has been hurt by a weak rupee, according to forecasts by the World Gold Council. China’s gold consumption in 2011 jumped to 769.8 tonnes, a rise of 20% from a year earlier. Meanwhile, India’s demand fell 7% to 933.4 tonnes, as a weak rupee raised the cost of gold in domestic-currency terms. In a statement Thursday, the World Gold Council’s Managing Director Marcus Grubb said if current trends hold it’s likely China will “emerge as the largest gold market in the world for the first time.” Separately, Nomura analysts said India’s gold demand was set to dampen further as inflation pressures moderate in coming quarters.