On Monday (September 23) in the Asian market, gold hit a record high of $2,630 in a short period of time, and Bitcoin soared above $64,400, with the RSI indicator triggering a bull market signal. The inverted head and shoulders pattern analysis shows that the ratio of Bitcoin to gold is expected to rise by more than 400% in 2025. As the economic slowdown intensifies, the People's Bank of China lowered its short-term policy interest rate on Monday, which is part of the interest rate cut measures that began in July. The Bank of Japan kept its interest rate unchanged, and the Federal Reserve decided to cut interest rates by 50 basis points. The dovish signal stimulated funds to flow into precious metals and cryptocurrency buying.

The People's Bank of China (PBOC) on Monday cut the 14-day reverse repurchase rate to 1.85% from 1.95% previously, and said in a statement that it also injected 74.5 billion yuan, or about $10.6 billion, of liquidity into the banking system through the facility. The move came ahead of the seven-day National Day holiday starting on Oct. 1.

China's youth unemployment rate rose for a second straight month to its highest level this year, data from the National Bureau of Statistics showed on Friday, as a weak economy led to a cooling labor market.

The Bank of Japan kept interest rates unchanged at 0.25% last week, slowing the potential for yen carry trades. Japan's chief foreign exchange diplomat Atsushi Mimura said Japanese authorities are watching the market closely for any signs of the re-emergence of yen carry trades that could exacerbate market volatility.

The Federal Reserve decided to cut interest rates by 50 basis points in September, officially launching an easing cycle.

The Reserve Bank of Australia will begin a two-day policy meeting on Monday, and the bank's governor will decide the country's monetary policy path on Tuesday.

Singapore will release its consumer price index for August, with a Reuters poll showing the core consumer price index (CPI) expected to rise 2.6% year-on-year, from 2.5% in July. The headline CPI is expected to fall to 2.15% year-on-year, from 2.40% last month.

Asian stocks mostly rose as investors digested the Federal Reserve's rate cuts and regional central bank policy moves. Last week, all three major U.S. stock indices recorded gains, with the S&P 500 rising 1.36%, its fifth gain in the past six weeks. The Dow Jones Industrial Average closed up 1.62%, while the tech-heavy Nasdaq Composite rose 1.49%.

The geopolitical situation in the Middle East continues to ferment. According to the Times of Israel (TOI), Hezbollah fired at least 10 missiles at the northern town of the Jezreel Valley in Israel on Saturday night local time. In response, Israeli warplanes launched a series of retaliatory strikes on southern Lebanon, hitting at least 110 Hezbollah positions.

Looking ahead to the future market, the US PCE index and speeches by several Federal Reserve officials are expected to become market catalysts.

Gold technical analysis: RSI approaches overbought territory

FXStreet analyst Dhwani Mehta said that looking at the daily chart, gold prices appear ready for a correction as the 14-day relative strength index (RSI) is in overbought territory and is currently close to 72.

If buyers can resist the bearish pressure, a decisive break above the $2,530 round number mark is needed for further gains. A break above this level would require a test of the $2,650 psychological barrier as buyers would then target the $2,700 threshold for the first time.

In a downward correction trend, gold prices will test the previous trading day's low of $2,585. After breaking this low, the static support level of around $2,550 will be challenged.

A deeper pullback could threaten the critical support near $2,535, which is the confluence of the August 20 high and the 21-day simple moving average (SMA).

Bitcoin technical analysis: RSI indicator triggers bullish signal

Well-known trader and analyst Titan of Crypto expressed a bullish view, saying that the price of Bitcoin is expected to rise by about 35% by the end of this year, and set a medium-term target of $85,000. He pointed out: "The weekly RSI breakthrough means that Bitcoin will have an explosive trend before the end of the year."

He added: “Historical data shows that when September closes in the green, the fourth quarter usually shows a strong uptrend. If Bitcoin can close above $59,000 this month, a bull run can be expected by the end of the year.”

Peter Brandt, a veteran analyst and founder of Factor Trading who successfully predicted the Bitcoin crash in 2018, is also extremely bullish on the Bitcoin-to-gold ratio. He said that based on the technical analysis of the Inverted Head and Shoulders (IH&S) pattern, the Bitcoin-to-gold ratio is expected to rise by more than 400% by 2025.

He predicts that the price of one Bitcoin could reach 123 ounces of gold as early as 2025, which would be an increase of more than 400% compared to 24 ounces on September 22, 2024.