The US stock market crashed yesterday, Wednesday, January 5, 2021, The NASDQ fell 3.34%, and the S&P 1.94% and lead a global stock market sell off today.
The FED crash spread to precious metals today, gold fell 1.64% and silver 4.27%, and other metals are also selling off.
The FED will stop buying US Treasuries and Mortgage-backed securities, will increase interest rates, and will start to sell bonds per the FED meeting minutes of December 2021. The FED plans three interest rate hikes in 2022 and another three hikes in 2023.
Interest rate increases cause commodities, such as precious metals, to fall in price, but precious metals prices tend to increase sharply during recessions. Financial analysts expect a US recession to start late 2022.