In a weekend surge, both Bitcoin and gold rallied, reaching new highs before experiencing a slight pullback. This rally was fueled by optimism surrounding the Federal Reserve's possible rate cuts and the potential approval of a Bitcoin exchange trade fund (ETF). The yellow metal reached its highest intraday peak ever, while the digital asset reached its highest level since April 2022.

Mark Connors, director of research at digital asset-management company 3iQ, noted that both assets were boosted by the belief that the Federal Reserve has completed its rate hikes and may start cutting its key policy rate as early as March next year. This outlook led to a significant increase in the likelihood of a 25 basis points interest rate cut at the Fed's March meeting, according to CME FedWatch tool.

Additionally, the decline in the 10-year Treasury yield over the past month has been bullish for both gold and Bitcoin. Lower Treasury rates make these non-interest-bearing assets more attractive, as explained by Greg Magadini, director of derivatives at Amberdata.

The correlation between gold and Bitcoin has been evident throughout this year, with both assets often trading in tandem during significant events, such as the U.S. banking mini-crisis in March and the Israel-Hamas war in October, as observed by Magadini.

However, David Tawil, president and co-founder at digital asset fund ProChain Capital, believes that the rally in Bitcoin may be primarily driven by the anticipation of the U.S. Securities and Exchange Commission (SEC) approving a Bitcoin ETF. Tawil expects Bitcoin to continue its upward trend, with a potential price target of $47,000 once the ETF is approved.

For gold, the focus now turns to the upcoming U.S. jobs report on Friday. Analyst James Harte from Tickmill Group suggests that if the report comes in weaker than expected, it could put further pressure on the U.S. dollar, allowing gold to trade higher in the near term.

On Monday, front month gold futures experienced a 2.3% decline, losing $46.90 per troy ounce to reach $2024.10, according to Dow Jones market data. Conversely, Bitcoin rose by 5.5% in the past 24 hours, hovering just below $41,900, according to CoinDesk data.

While Bitcoin and gold soared, U.S. stocks closed lower on Monday, with the Dow Jones Industrial Average... (further information or details can be added based on accurate data and current market conditions)