Gold prices in India swung to a premium for the first time in nine months on Wednesday as jewellers and dealers in the world's No.2 consumer of the metal ramped up purchases ahead of major festivals.

Dealers were charging up to $2 an ounce over official domestic prices, the first time premiums have been seen since mid-January, said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.