Gold hits record high as Fed faces fresh threats

Gold rose about 2% to around $4,600 an ounce, reaching a new record, after Federal Reserve chair Jerome Powell said he faced a threatened criminal indictment; the move coincided with a weaker US dollar and notable market commentary about the Fed's independence.

Gold has reached a new record as investors sought safe-haven assets amid concern about the Federal Reserve's independence. The metal climbed roughly 2% to about $4,600 per ounce, surpassing a late-December peak, and has risen about 70% over the past year. The price move followed a statement from Fed chair Jerome Powell saying he faced a threatened criminal indictment related to his testimony about renovations at Fed office buildings. The article reports these developments occurred alongside a softer US dollar and mixed moves in UK markets. Key points: - Gold rose about 2% to near $4,600 per ounce, marking a new record and reflecting strong gains over the past year. - Jerome Powell said he faced a threatened criminal indictment over his testimony about Federal Reserve office renovations and warned that such threats undermine the Fed's role. - The US dollar weakened against major currencies while the FTSE 100 was roughly flat near 10,123 points; the article mentions Barclays fell about 2.5%. - Analysts quoted in the piece described the situation as an escalation of criticism toward the Fed and noted it was unnerving for markets. Summary: The rise in gold reflects investor demand for safe-haven assets as questions about the Federal Reserve's independence have intensified. Undetermined at this time.