Indian Bargain Hunting Not Evident Yet

But it may begin, according to a Reuters India article, because falling gold prices will encourage gold dealers to restock their inventories.

"Prices are below 16,600 levels (per 10 gm) now...I think there should be some buying now," said a dealer at a private bank, which deals in bullion.

Demand has been poor in the past few days as buying subsided on expectations of a fall in prices, and an unexpected rate hike by Indian central bank last week further hit sentiment.