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Below the Perspective on Crude Oil, Gold and Update on the U.S Government Shutdown by Ms. Riya Singh , Emkay Global Financial Services

Update on U.S. Government Shutdown

The U.S. Senate has taken the first major step toward ending the ongoing government shutdown. In a vote of 60 in favor and 40 against, senators approved what’s called a “cloture motion” on a bill known as H.R. 5371 – the Continuing Appropriations and Extensions Act, 2026.

In simple terms, this vote allows the Senate to move forward with debating and passing the funding bill that would reopen the government and restore funding to key departments and agencies. This is not the final vote yet, but it is a crucial procedural step showing that enough senators, both Democrats and some Republicans, support ending the shutdown.

Markets are likely to view this as a positive development, as it reduces the risk of prolonged disruption to government services, payments, and economic data releases. If the bill passes fully in the coming days, the U.S. government could reopen soon, helping ease uncertainty.

Weekly Crude Oil Outlook

Crude oil prices extended gains for a second straight session, with WTI trading near $60 per barrel in early Asian trade. The upward momentum was driven by optimism that the prolonged U.S. government shutdown may soon be resolved, potentially restoring economic activity and fuel demand in the world’s largest oil consumer. Reports indicated that centrist Senate Democrats have backed a deal to reopen the government and fund several departments through the next fiscal year, which markets interpreted as a sign of easing policy uncertainty.

Despite this rebound, the broader oil market remains cautious amid persistent supply-side pressures. OPEC+ and its allies have modestly raised production for December, though they signaled restraint in further increases during the first quarter of 2026 to prevent oversupply. Rising output from non-OPEC producers continues to weigh on market balance concerns.

Weekly Gold Outlook

Gold opened the week on a firmer note, hovering close to $4,050 per ounce in early Asian trade as investors positioned for potential U.S. monetary easing. Weak labor market signals have reinforced expectations that the Federal Reserve may trim rates in December, lending support to the precious metal. The sharp increase in job cuts—over 150,000 reported in October, the highest in more than two decades—underscored a cooling employment environment.

Market sentiment further shifted after the University of Michigan’s Consumer Sentiment Index fell to 50.3 in November, its lowest level since mid-2022, reflecting growing unease over the U.S. economic outlook. These developments collectively pressured the dollar and Treasury yields, bolstering bullion’s appeal as a hedge against economic uncertainty.

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