Indian Gold Buying Still Strengthening

Although influenced by the wedding season and an upcoming festival, gold demand by dealers is also strengthening because prices have fallen back:

"I did normal deals today at around $1,105-1,107 (an ounce), even Friday was good, when we sold about 100 kgs at 1,100-1,105 levels," said a dealer from a state-run bullion dealing bank....

"A lot of orders are there at about $1,090 (an ounce)," said another dealer with a state-run bank. However a weak rupee, which makes the dollar-quoted asset expensive, weighed on sentiment. The Indian rupee weakened, weighed down by gains in the dollar against major currencies and losses in the local sharemarket.

Bargain-hunting does seem to be kicking in; the acclimatization to $1,100 as a low price is still there.