Indian Gold Demand "Lacklustre"

That's according to a recent commodities report in The Hindu Business Line, which said that gold is likely to meet resistance above $1,100.

Physical demand continues to be lacklustre and may remain so over the next quarter. Onset of southwest monsoon by early June and its progress will have a bearing on physical demand in India....

While investor interest remains stable, firm dollar and exit of less-committed speculators would cap the upside. At levels above $1,100/oz, the yellow metal is sure to face resistance.

Of course, $1,100 has provided support that, although not adamantine, has been strong. Putting this fact together with the above analysis yields a trading range. A technicial-analysis article in the same publication has a similar view, although with a more bullish slant.