I heard on the street that it was affluent Indians buying Gold when they get married that is a significant factor. The middle class is getting bigger on both ends and that translates into a cultural increase in demand.
An increase in demand from India is not related to a weakening $$. The price will rise so long as the supply is tight.
"An increase in demand from India is not related to a weakening $$"
I've noticed gold and the dollar rising concurrently on several occasions over the past year, so what you've heard could very well be playing some part.
The Indian wedding season is mostly in the fall, so that doesn't account for the current rise. One factor MIGHT be Chinese central bank buying. They don't have much gold in their reserves.