Indian Gold Buying Tails Off

Again, the reason is a wait for lower prices. According to a report from Reuters India, that reason plus a weakening rupee explains the new dearth.

"The orders are still at lower levels below $1,180 (an ounce), so buy orders are not getting triggered," said a official with a private bullion dealing bank in Mumbai.

"Nothing much is happening today as the price [drop drop yesterday] is not much in local terms due to a weak rupee," said a dealer with a state-run bank.

The next festival isn't until August 24th, so stockists have some time to wait.