Dollar dips, gold at record high as US prosecutors target Fed's Powell

Source - https://www.reuters.com/business/finance/global-markets-global-markets-2026-01-12/

The dollar and Wall Street futures dropped and gold jumped on Monday as Federal Reserve Chair Jerome Powell said the Trump administration had threatened him with a criminal indictment over the refurbishment of the central bank's headquarters.

This escalated worries about the Fed's independence from political influence to a new level and added to a frenetic start to 2026, which has already seen the U.S. capture Venezuela's Nicolas Maduro and ramp up talk of taking control of Greenland.

Gold hit a record high of $4,600 on Monday, while silver also set a new peak, as a criminal probe by the Trump administration into Federal Reserve Chair Jerome Powell sent investors back into the asset viewed as a safe haven.

Spot gold jumped 1.7% to $4,584.12 per ounce by 1159 GMT, after earlier hitting a record high of $4,600.33. U.S. gold futures for February delivery gained 2.1% to $4,595.