Lower Gold Prices Didn't Help Wholesale Indian Demand

That's because the rupee weakened, mitigating the decline. As a report from the Economic Times explains:

India gold demand receded on Monday after a slight pick-up in the previous session, as the rupee weakened, making the dollar-quoted asset expensive, dealers said. "On Friday, we witnessed good volumes and did deals in the range of $1,130-1,140 an ounce, but people are waiting today as the rupee has depreciated," said Pinakin Vyas, assistant vice-president, treasury, with IndusInd Bank

Although the ruppe's the prime variable, the near-halt in the gold decline may encourage more buying tomorrow.