Dollar dips, gold at record high as US prosecutors target Fed's Powell

STORY: The dollar and Wall Street futures dropped and gold jumped on Monday (January 12).Markets were spooked after an update from Federal Reserve Chair Jerome Powell.He said the Trump administration had threatened him with a criminal indictment over the refurbishment of the central bank's headquarters.Powell called the threat a "pretext" aimed at pressuring the central bank to cut interest rates.It furthered worries about the Fed's independence from political influence to a new level.The update adds to a choppy start to the year - which has already seen the U.S. capture Venezuela's Nicolas Maduro and tensions over Greenland.S&P 500 futures fell more than 0.5%, while safe-haven gold hit another record high of more than $4,600 an ounce.The metal drew buyers as worries also grew around geopolitical tensions in Iran.Trump said on Sunday he was weighing a range of strong responses, including military options, to a violent crackdown on Iranian protests.Iran's Foreign Minister said on Monday the situation was "under total control."Europe also slightly dipped from record highs after markets opened.While another safe-haven in the Swiss franc strengthened against the dollar.Looking ahead, investors will wait for key data this week, including U.S. inflation, trade figures from China and U.S. company earnings.