Markets Jolt as Reported Probe of Fed Chair Sends Gold to Record

Investors fled risk assets amid worries that political pressure on the Federal Reserve could undermine confidence in U.S. monetary policy.

Gold surged to a record high on Monday while the dollar and U.S. stock futures slid, after news of a criminal investigation into Federal Reserve Chair Jerome Powell rattled markets. Investors grew uneasy about the independence of the world’s most powerful central bank, sending money into safe haven assets. S&P 500 and Nasdaq futures fell ahead of the U.S. open, volatility spiked, and bond markets began pricing in a slightly higher chance of near term interest rate cuts.

The development intensified an already turbulent start to 2026, marked by sharp geopolitical tensions and clashes between the White House and the Fed. Analysts said the escalating conflict between President Donald Trump and the central bank poses continued downside risks for the dollar. Meanwhile, silver also jumped sharply, European markets remained near record highs, and currencies such as the Swiss franc strengthened, reflecting growing global demand for stability amid political and economic uncertainty.