Gold hits record as risks to Fed independence, Iran fan demand

PRECIOUS METALS

- YIHUI XIE PREETI SONI

A saleswoman adjusts gold jewellery for sale at a shop in Lianyungang, China, in December.

(AFP)

Gold and silver hit records as the US Justice Department threatened the Federal Reserve with a criminal indictment, reviving concerns over its independence, while protests in Iran supported haven demand.

The yellow metal spiked towards $4,600 an ounce, while silver neared $85, after Fed Chair Jerome Powell said the potential indictment “should be seen in the broader context of the administration’s threats and ongoing pressure” to influence the bank's interest-rate decisions. Repeated attacks on the Fed last year by the Trump administration were a major factor hurting the dollar.