Update: Gold Trading at a Record High as Powell Says Trump is Attacking the Federal Reserve's Independence

02:00 PM EST, 01/12/2026 (MT Newswires) -- (Updates prices.)

Gold traded at a record high midafternoon on Monday as the dollar fell after the U.S. Justice Department on Friday served the Federal Reserve with grand jury subpoenas, threatening to indict Fed Chair Jerome Powell as the Trump Administration pushes to restrict the independence of the central bank and pressed for lower interest rates.

Gold for February delivery was last seen up US$114.70 to US$4,618.00 per ounce, topping the Dec.26 record close of US$4,552.50.

Powell issued a statement on Sunday, saying the investigation was related to testimony before the Senate Banking Committee in June concerning renovations to the Fed's office buildings. However he said he believes the real reason behind the subpoenas was due to the bank's refusal to respond to President Trump's pressure to lower rates.

"This unprecedented action should be seen in the broader context of the administration's threats and ongoing pressure," Powell said in a video message. "This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress's oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President."

Threats to the independence of the central bank are unsettling markets, with the dollar weakening.

"Trump and his administration intensified their attack on the Federal Reserve by serving it with DOJ subpoenas, fueling concerns about central bank independence, inflation and safety of US bonds," Saxo Bank noted.

The dollar was lower, with the ICE dollar index last seen down 0.25 points to 98.89. Treasury yields were steady, with the U.S. two-year note last seen paying 3.541%, up 0.5 basis points, while the yield on the ten-year note was up 0.1 points to 4.176%.

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