Silver Outperforms Gold in Early Global Trading as Indian Markets Close for Diwali

Silver outperformed gold in early global trading on Tuesday as Indian commodity markets stayed closed for Diwali, leaving domestic traders to wait until the Multi Commodity Exchange (MCX) reopens. December silver on COMEX rose 0.92 per cent to $53.18 a troy ounce by around 6:30 am IST, while December gold gained 0.50 per cent to $4,135.20.

Both metals extended a rally from Monday's session. On Monday, MCX gold touched ₹1,44,400 per 10 grams before closing at ₹1,43,106. Meanwhile, silver hit ₹1,89,399 per kg before settling at ₹1,87,015, giving back a significant portion of intraday gains in both cases. Monday's intraday highs will serve as key levels to watch when trading resumes.

The broader advance was supported by a softer US dollar and falling oil prices. Brent crude slipped a further 1.1 per cent to $91.57 a barrel on Tuesday morning after US President Donald Trump signalled no additional military action against Iran so long as negotiations continue. Kaynat Chainwala, AVP Commodity Research at Kotak Neo, noted that democratic gains in the US midterm elections have increased expectations that diplomatic efforts with Iran could gain traction, driving crude lower and easing inflation pressure.

However, these gains face a near-term test. October nonfarm payrolls rose 165,000, which is well above forecasts and reinforces expectations of further Federal Reserve tightening. United States Consumer Price Index (CPI) data is scheduled for release at 7 pm IST, coinciding with the MCX post-holiday session.

For Indian traders, the currency market is also shut, leaving Monday's dollar-rupee close of ₹93.9275 as the only onshore reference when the MCX reopens. Vikram Subburaj, CEO of Giottus, cautioned that the first MCX print is worth treating as provisional, given that inflation data and a closed forex market could together amplify early volatility.

"The divergence between domestic market closures and active global trading creates a unique risk environment for Indian commodity traders. With international prices responding to shifting macroeconomic indicators like US employment data and crude oil movements, domestic participants must exercise caution upon reopening. Relying on provisional opening prints while currency markets remain closed could expose traders to sudden volatility. It is essential to monitor key technical levels closely as local exchanges reconcile with international trends." — Dr. Shishir Gupta, Founder & CEO, StartupLanes