He added that he expected gold to strengthen considerably on news of the shutdown, then sharply pull back when a resolution is found.
Meanwhile, in terms of currencies, Mitul Kotecha, MD at Crédit Agricole, forecast further weakness in the U.S. dollar in the event of a government shutdown.
"The near term prospects for the currency are bleak, with limited potential for any upside unless a budget deal is reached," he said. "Safe haven currencies in particular the Japanese yen will be buoyed in this environment. The euro will not fully be able to take advantage of U.S. dollar weakness however, given the political tensions within the euro zone," he added.
(Read more: Jobs report maybe delayed by government shutdown)
Steve Goldman, MD of Kapstream Capital, told CNBC Asia's Squawk Box on Monday that political stalemate in Washington, if extended, would likely provide support for U.S. Treasurys.
"A longer stalemate means 10-year Treasury yields could fall well below 2.5 percent, perhaps even testing 2 percent if the situation got bad enough," he added.
— By CNBC'sKatie Holliday: Follow her on Twitter @hollidaykatie