Gold Soars as Powell Faces Probe Amidst U.S. Geopolitical Tensions

Gold reached record highs while the dollar and Wall Street futures fell following a criminal investigation into Federal Reserve Chair Jerome Powell. This development, linked to President Trump's pressure on the Fed, added to geopolitical concerns involving Venezuela and Iran, causing market instability.

Gold soared to unprecedented heights, while the dollar and Wall Street futures experienced a downturn on Monday, following news of a criminal investigation into Federal Reserve Chair Jerome Powell. This matter has raised questions about the independence of the U.S. central bank.

The investigation is seen as part of President Trump's effort to exert greater influence over the Fed. Market reactions were swift, with gold soaring to $4,600 an ounce as investors sought a hedge against uncertainty. Meanwhile, both the S&P 500 and Nasdaq futures dropped over 0.6%.

Additional geopolitical tensions involving Iran and Venezuela have contributed to the market's tumultuous start to the year. Oil prices dipped slightly despite rising geopolitical concerns, while European markets remained buoyed by classic safe-haven currencies strengthening. The ongoing confrontation between Trump and Powell underscores the challenges posed to central bank independence.

(With inputs from agencies.)