Indian Gold Buying Still Slack

According to a report by the Economic Times, a weaker rupee helped dampen demand.

"It's all dull at the moment because of high prices and monsoon. There was buying in bits and pieces yesterday, when gold was below $1,230 (an ounce)," said a dealer with a state-run bullion dealing bank....

India is entering the lean season for gold deals as the annual monsoon rains sweep the country, and farmers, who account for 65 per cent of the country's gold demand, spend their money on sowing crop. "We can see more buying if prices fall in the range of $1,230-1,235 (an ounce)," said another dealer with a private bank.

That pricing point makes some sense, as it's at the bottom of gold's current range.