Business
Gold price soars to new record as US Federal Reserve faces fresh threats
The price of gold has soared to a new record high as concerns about fresh threats to the independence of the US central bank fuel demand for the asset.
The metal climbed by around 2% on Monday morning to a high of 4,600 US dollars (£3,415) per ounce, beating a previous record set in late December.
Rising gold prices typically indicate that investors are seeking out so-called safe haven assets.
These tend to carry less risk than other investments, such as stocks and shares, and often outperform financial markets during periods of turbulence.
Gold prices have shot up by about 70% over the past year, strengthening against broader economic and political uncertainty.
The latest rush to the precious metal came after US central bank chairman Jerome Powell said it was being threatened with a criminal indictment over his testimony about renovations at Federal Reserve office buildings.
It represents a significant escalation in President Donald Trump’s criticism of the Federal Reserve and its decisions not to cut interest rates as quickly as he would prefer.
Mr Powell said in a video statement that the threat of criminal charges undermined the Fed’s role and questioned whether monetary policy will in future be “directed by political pressure or intimidation”.
The news stoked fears that threats to the independence of the central bank were becoming more severe.
While gold prices soared, the US dollar was weakening against key currencies.
The pound was up by nearly 0.5% against the US dollar on Monday morning, to 1.346.
The euro was also up by about 0.4% against the US dollar, at 1.168.
Susannah Streeter, chief investment strategist at Wealth Club, said Wall Street has been “rattled by what’s being viewed as another assault on the independence of the US Federal Reserve”.
“It certainly marks a sharp escalation in the Trump administration’s criticism of the Fed and is unnerving investors given that an independent central bank is considered to be crucial to maintaining sound monetary policy, especially at a time when the mounting US debt pile is coming under scrutiny,” she said.
Chris Beauchamp, chief market analyst at IG, said the dispute “represents a major crisis for markets and has the potential to restart worries about the dollar and US monetary policy”.
The UK’s FTSE 100 took a step back after enjoying a run in recent weeks, having hit new record highs and surpassing the milestone 10,000 mark for the first time.
It was more or less flat by mid-morning on Monday at about 10,123 points.
Barclays was among the biggest fallers on the FTSE 100 on Monday, with its share price down by about 2.5%.
The UK-listed bank has been caught up in the reaction to Mr Trump calling for a one-year cap of 10% on credit card interest rates.
The president said Americans were being “ripped off” by high interest rates on credit and they should be limited from January 20.
Russ Mould, investment director at AJ Bell, said Barclays was one of the largest issuers of credit cards in the US.
“While consumers would love to see lower rates on credit cards, Trump may not be able to enact such a move without approval from Congress,” he said.
“It also raises questions about the knock-on effect of a cap on credit and whether a drop in associated earnings for lenders could lead to reduced availability of credit in general, forcing some consumers and businesses to seek more costly alternatives.”
More than 2,000 pubs, restaurants and hotels could shut their doors this year unless the Government makes sector-wide changes to “staggering” incoming business rate increases, UK Hospitality has warned.
The trade body has joined the chorus of calls from industry figures for relief set to be announced for pubs to be extended across the sector.
It laid bare the toll that April 1 rises to property taxes will mean for hospitality companies, estimating that 2,076 firms could close in 2026 as a result, with 293 restaurants, 574 hotels and 540 pubs at risk of being forced to shut down.
This is equivalent to six hospitality venues closing every day, it said.
The Government is expected to announce a package of changes within days to help pubs amid outcry over the impact of rate hikes on the sector, marking a major U-turn on its November 26 budget plans.
But UK Hospitality chairwoman Kate Nicholls said this needs to be extended to hotels and restaurants, which are also facing significant hikes.
The group calculates the average hotel will see its rates increase by £28,900 in 2026 and by £205,200 in total over the next three years – an increase of 115%.
This compares with a 15%, or £1,400, rise for pubs in 2026, and a 76% jump over the next three years, which will mean an increase of £12,900.
Ms Nicholls said: “Staggering increases to business rates will affect the entire hospitality sector and without a hospitality-wide solution, we will see significant business closures.
“Thousands of venues, particularly neighbourhood restaurants and local hotels, will be forced to close for good as a result of the significant rates rises they’re facing.
“This is yet another blow to a hospitality sector that bears the highest tax burden in the economy, and has already been disproportionately burdened by increases to National Insurance Contributions, wages, energy and other inputs.”
The group is urging the Government to increase the business rates discount for all hospitality properties from 5p to 20p, which would be the maximum allowed under current law.
“Hospitality is one of the nation’s biggest employers and has an incredible potential to grow and create jobs, but the money coming in the front door is simply not enough to offset the rocketing costs of doing business,” Ms Nicholls said.
The rise in rates is due to a combination of properties being revalued and the withdrawal of Covid-era discounts which was announced by Chancellor Rachel Reeves in November.
Ministers had put in place a £4.3 billion fund to help pubs with the transition to higher rates, but it is understood that Ms Reeves will soon announce additional support, including further business rates relief and measures to cut licensing red tape.
Last Updated:
An Indian IT professional built Rs 9 crore in 20 years via disciplined equity and mutual fund investing, earning praise for his financial freedom story./
By 2026, his annual salary had grown to about Rs 65 lakh, while his investment portfolio had swelled to nearly Rs 9 crore.
Whether salaried employees or business owners, most Indians worry about how to build a financial cushion for life after retirement. While many continue to favour conservative investment options, a recent post by an IT professional on Reddit has struck a chord online, offering a compelling counter-narrative built on discipline and long-term investing.
The now-viral post details how the engineer accumulated a corpus of nearly Rs 9 crore over two decades, without inherited wealth, overseas income, stock options or windfall gains from real estate. Describing himself as an “average guy working in IT industry”, the 47-year-old said he began his career in 2005 with an annual salary of Rs 3 lakh and no investment portfolio to speak of.
According to the post, the professional invested in equities from the very beginning of his career, avoided fixed deposits, lived frugally and consistently channelled a significant portion of his income into stocks and mutual funds. He was the sole earning member of a family of five throughout this period. “No onsite/dollar earnings though travelled to multiple countries from company/self,” he wrote, adding that his approach remained unchanged even as his income rose over the years.
By 2026, his annual salary had grown to about Rs 65 lakh, while his investment portfolio had swelled to nearly Rs 9 crore. Of this, around Rs 8 crore is invested directly in equities and about Rs 1 crore in mutual funds. He claims his portfolio has delivered an average annual return, or XIRR, of roughly 21%, an exceptional figure by market standards.
“No ESOP. Salary is pre-tax. Each year there was some extra bonus/awards as usual,” he further wrote, saying that he was the only earning member in a family of five.
The IT professional attributed his success largely to the power of compounding. “This is pure compounding with 21% XIRR. The magic happens after 10-15 years. I still hold many shares for decade,” he wrote. He also noted that he invested his annual bonuses in the market and now earns close to Rs 6 lakh a year in dividends from his equity holdings.
The post has drawn widespread praise on social media, with users calling it a rare and honest account amid stories dominated by overseas earnings and startup windfalls. “21 percent XIRR is insane, can you please guide us on this,” one user commented.
Another wrote, “A true story of a common Indian IT professional. Thanks for keeping it real.” Yet another said the post stood out because it showed that financial freedom is possible in India through disciplined spending and long-term investing.
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January 12, 2026, 21:19 IST
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Laura CressTechnology reporter
SOPA Images via GettyOfcom has launched an investigation into Elon Musk’s X over concerns its AI tool Grok is being used to create sexualised images.
In a statement, the UK watchdog said there had been “deeply concerning reports” of the chatbot being used to create and share undressed images of people, as well as “sexualised images of children”.
If found to have broken the law, Ofcom can potentially issue X with a fine of up to 10% of its worldwide revenue or £18 million, whichever is greater.
X referred the BBC to a statement posted by its Safety account at the start of January: “Anyone using or prompting Grok to make illegal content will suffer the same consequences as if they upload illegal content.”.
Elon Musk later said the UK government wanted “any excuse for censorship” in response to a post questioning why other AI platforms were not being looked at.
The BBC has seen several examples of digitally altered images on X, in which women were undressed and put in sexual positions without their consent. One woman said more than 100 sexualised images have been created of her.
If X does not comply, Ofcom can seek a court order to force internet service providers to block access to the site in the UK altogether.
Technology Secretary Liz Kendall told the BBC she welcomed the body’s investigation and urged it to complete it as soon as possible.
“It is vital that Ofcom complete this investigation swiftly because the public – and most importantly the victims – will not accept any delay,” she said.
Kendall’s predecessor Peter Kyle told BBC Breakfast it was “appalling” that Grok had “not been tested appropriately”.
“The fact that I met just yesterday a Jewish woman who has found her image of herself in a bikini outside of Auschwitz being generated by AI and put online made me feel sick to my stomach,” he said.
Other MPs who have raised concerns include Northern Ireland politician Cara Hunter, who said she had decided to leave the platform.
Downing Street meanwhile said the government remains focused on “protecting children” but would keep its presence on X “under review”.
“I think we’ve been clear that all options are on the table,” the Prime Minister’s official spokesperson said.
‘Highest priority’
Ofcom will now examine whether X has failed to take down illegal content quickly when it became aware of it, and taken “appropriate steps” to prevent people in the UK from seeing it.
It said such illegal content included “non-consensual intimate images” and child sexual imagery.
It will also check whether X has used “highly effective age assurance” measures to stop children from seeing pornographic images.
The decision follows global backlash over Grok’s image creation feature, with both Malaysia and Indonesia temporarily blocking access to the tool over the weekend.
An Ofcom spokesperson did not give an indication on how long the investigation would take but said it would be a “matter of the highest priority”.
“Platforms must protect people in the UK from content that’s illegal in the UK,” they said.
“We won’t hesitate to investigate where we suspect companies are failing in their duties, especially where there’s a risk of harm to children.”
Lorna Woods, professor of internet law at Essex University, told the BBC it was “hard to predict” how quickly the investigation would move.
“Ofcom has a degree of choice in how fast – or slow – they take the investigation,” she said.
She said the regulator could apply for a business disruption order – a court order to block access to X in the UK – straight away rather than as a last resort, but only in “rare circumstances” in response to an ongoing problem.
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