Asian equities gained on Monday and precious metals set records as investors digested news that the US Justice Department is probing the Federal Reserve, raising fears over US central bank independence.Fed Chair Jerome Powell confirmed the “unprecedented” move late on Sunday, which he blasted as part of US President Donald Trump’s pressure campaign for another rate cut.Gold surged 1.6 percent to nearly $4,600 an ounce, while silver approached $85 an ounce — both records — as investors sought safe havens. The dollar fell about 0.2 percent against major peers, according to Bloomberg.”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,” Powell said in a statement.He said the bank received grand jury subpoenas on Friday related to his Senate testimony in June, which had been about a major renovation project of Federal Reserve office buildings.The Fed has indicated that it would hold interest rates steady in its closely watched meeting at the end of this month.”The subpoenas mark a clear break in the long-held boundary between politics and monetary policy, a line markets once assumed was untouchable,” Stephen Innes of SPI Asset Management told AFP.”Investors are not weighing the odds of charges so much as the risk that political pressure has crept into the Fed’s decision-making,” he said.The probe will play into the outlooks for US dollar and Treasuries, Michael Brown of Pepperstone wrote in a comment.”Both the USD and USTs will now have to price a considerably higher risk premium, and hence are likely to face some headwinds in the short-term, and unimaginably brutal selling pressure if this matter were to progress to criminal charges, or a prosecution,” Brown said.The development came on the heels of Friday’s soft US jobs report that showed just 50,000 new positions in December, while unemployment slipped to 4.4 percent.Asian markets were up, led by gains in Hong Kong, Shanghai, Seoul, Taipei and Manila, tracking Wall Street’s record Friday close.Singapore, Kuala Lumpur, Jakarta and Sydney were also in the green, while Mumbai, Bangkok and Wellington dipped.London and Paris opened in the red, while Frankfurt was up.Most stock markets have enjoyed a solid start to 2026, with indices in Frankfurt, London, Paris and Seoul hitting record highs last week, largely on optimism for the tech sector and gains in defence sector shares.Oil prices dipped slightly after gaining during afternoon trade, as protests in Iran and the US seizure of Venezuela’s oil supplies continued to stoke geopolitical risk.The US president has warned Tehran of repercussions if demonstrators were harmed, while Iran cautioned against foreign intervention.Trump said on Sunday evening he was considering potential military action against Iran following reports of a violent crackdown on protests leading to the deaths of hundreds of people.”We’re looking at it very seriously,” Trump told reporters on Air Force One. “The military is looking at it, and we’re looking at some very strong options. We’ll make a determination,” he said.- Key figures at around 0815 GMT -Hong Kong – Hang Seng Index: UP 1.3 percent at 26,608.48 (close)Shanghai – Composite: UP 1.1 percent at 4,165.29 (close)Tokyo – Nikkei 225: (closed for holiday)London – FTSE 100: DOWN 0.3 percent at 10,097.76Euro/dollar: UP at $1.1679 from $1.1635 on FridayPound/dollar: UP at $1.3450 from $1.3407Dollar/yen: DOWN at 157.80 yen from 157.88 yenEuro/pound: UP at 86.83 pence from 86.78 penceWest Texas Intermediate: DOWN 0.3 percent at $58.93 per barrelBrent North Sea Crude: DOWN 0.3 at $63.17 per barrelNew York – Dow: UP 0.5 percent at 49,504.07 points (close)