INDIA October 01 2014 4:35 PM

MUMBAI (Scrap Register): Indian gold premiums may double by the end of October, said Commerzbank, citing comments by the All India Gems & Jewellery Trade Federation.

The federation said the gold-price premium over London values could rise to $20 per troy ounce, which would be its highest level since early July, said Commerzbank.

“In Indian rupee terms, gold has likewise fallen noticeably in price in recent months, which should give rise to increased jewelry purchases ahead of the festival season. Diwali, one of the highest Hindu festivals in India, will be held this year on 23 October. Last year, premiums during the Diwali period still totaled $120 per troy ounce, according to the federation,” Commerzbank added.