Gold rallies as Biden makes Taiwan pledge, Euro surges as ECB prepares to hike rates [Video]

Gold rallies as Biden makes Taiwan pledge

 Gold prices rose for a fifth consecutive session to start the week, following comments from President Biden in regards to Taiwan.

Taiwan, which continues to fight for its independence from China, has long seeked support from the U.S. in this battle, with Biden today given some words of encouragement. 

On Monday, Biden stated , "We agree with a one-China policy. We've signed on to it and all the intended agreements made from there. But the idea that it (Taiwan) can be taken by force, just taken by force, is just not, is just not appropriate".

When asked if a possible invasion would result in a similar situation to Russia and Ukraine, Biden said, “Yes”.

XAUUSD is now trading at a three week high.

Euro surges, as ECB prepares to hike rates

The Euro was a big mover in currency markets on Monday, as traders responded to a signal from the ECB that a rate hike could be nearing.

In a blog post on the ECB’s website, President Christine Lagarde stated that we may soon see a change in policy by Q3.

Lagarde stated that, "Based on the current outlook, we are likely to be in a position to exit negative interest rates by the end of the third quarter".

The comments saw EURUSD rise to a multi-week high, with European indices also gaining.

As of writing, EURUSD is trading at 1.0685.