Following US President Donald Trump’s decision to nominate Kevin Warsh as the next chair of the Federal Reserve, gold and silver prices hit a steep decline. Current Fed Chair Jerome Powell could leave his post as soon as May, leaving the seat open for a successor of Trump’s choosing. Investors started selling off precious metals last week in favor of the USD again, as Warsh is someone who supports Trump’s desire to rebuild the US Dollar and slash interest rates.

The selloff sparked a price crash for both Silver and Gold, sending both assets down nearly double digit percentages. After months of record highs and stretched valuations, spot prices for gold and silver dropped 9% and 28%, respectively. Additionally, the US stock market also fell, with major indexes all reporting modest losses.

The crash in gold and silver, and decline in stock markets, suggest investors view interest rate cuts as less likely under Warsh than alternative candidates. Gold and silver prices typically rise in response to instability or fears of inflation. Hence, there seemed to be a fear that inflation would be negatively triggered by Warsh taking the Chair role, as he may favor steeper and more frequent interest rate cuts.

Next up, traders are watching the U.S. jobs report for January, due on Feb. 6 at 8:30 a.m. ET from the U.S. Bureau of Labor Statistics, for any read-through to rate-cut pricing. Any signs of a rate cut could further hit Silver and Gold prices, swinging hopes back to USD and stocks.