(Bloomberg) -- Gold steadied after surging on Monday on worries over the Federal Reserve’s independence as the Trump administration threatened the central bank with a criminal indictment.

Bullion traded near $4,588 an ounce after jumping 2% in the previous session. In a forceful written and video statement, Fed Chair Jerome Powell said the potential indictment against the monetary authority should be seen “in the broader context of the administration’s threats and ongoing pressure.”

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Repeated attacks on the Fed by the Trump administration were a major factor propelling gold to successive record highs last year. Political intervention undermines the central bank’s ability to rein in inflation, weighing on the dollar and Treasuries, and highlight the appeal of bullion as a store of value.

Spot gold fell 0.2% to $4,587.96 an ounce as of 7:37 a.m. Singapore time. The Bloomberg Dollar Spot Index was flat. Silver dropped 1.2% after surging by more than 6% on Monday.

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