Gold and Silver both break out of their consolidation range at $49 and $4050, respectively, hitting a two-week high as worries about the US economy grow. A bill to reopen the federal government and end the 40-day shutdown that has halted air travel, delayed food aid, and sidelined federal employees seemed to be on the verge of being approved by the U.S. Senate.

A crucial step toward restoring the government was approved by the Senate on Sunday by a vote of 60–40. The vote was prompted by a crucial agreement struck by eight Senate Democratic centrists with Senate GOP leaders and the White House to reopen the government in return for a vote on extending expanded Affordable Care subsidies later on. The decision opens the door for the shutdown to end as soon as this week, though there are still obstacles to overcome.

A weakened US dollar and worries over a protracted US government shutdown continue to bolster the precious metal, increasing demand for safe-haven assets. Indeed, according to the Congressional Budget Office, which is impartial, the government shutdown could reduce GDP by 1 – 2% in the fourth quarter.

As U.S. data revealed a spike in October layoffs, traders also boosted their bets on a December rate decrease. They are now putting in a 67% possibility. The government and retail sectors experienced employment losses in October, and enterprises’ use of artificial intelligence and cost-cutting measures resulted in a spike in announced layoffs. According to private data released on Thursday, cost-cutting and the deployment of AI were the main causes of the US economy’s October job loss of 153,000, the most in 22 years.

The US government shutdown lasted the longest in history on Friday, causing the University of Michigan’s consumer sentiment index to drop to its lowest point in almost three and a half years. Consumer sentiment fell from 53.6 in October to 50.3 in November, according to data from the University of Michigan. Concerningly, US consumer sentiment declined, further depressing market sentiment.

According to World Gold Council (WGC) data, in October, gold exchange-traded funds (ETFs) experienced inflows of 54.9 tonnes, driven mostly by robust demand from Asia (+44.8 tonnes) and North America (+47.2 tonnes), while Europe had outflows of 37.4 tonnes.

Markets are still divided on whether the US Federal Reserve will lower interest rates in December. As of Friday, traders are pricing in a roughly 67% chance of a quarter-point cut.

Gold prices have finally broken out of their consolidation range today, above $4050 (~Rs 122,000). The next target resistance to look for is $4150 (~124,500).

Silver prices have finally broken out of their consolidation range today, above $49 (~Rs 150,000). The next target resistance to look for is $50.80 (~155,000).