Gold demand typically peaks around now as Indian consumers load up on gold ahead of Diwali.
In response, gold shares on average have gained 2 percent one week ahead of the holiday. But we aren't seeing that big move in gold this year. Shares of the metal are down 1.4 percent this week, ahead of Diwali, which is being celebrated Nov. 3.
Analysts and gold gurus are predicting that demand in India will be weaker this year as consumers battle a slowing economy, rising inflation and a depreciating rupee.
(Read more: India's gold fever cools this Diwali)
"You can bet that with the current state of the economy, Indians will be buying less gold and looking for alternative gifting options this Diwali season," says Arvind Panagariya, professor of economics at Columbia University and India observer.