The price of gold has fallen more than 7 percent this morning to around $4,950 per ounce (31.1 grams). This compares with the historic peak of $5,417 per ounce on Wednesday.
The price of silver has plummeted 17 percent to just over $96 per ounce, compared with a peak of $117 on Wednesday.
At the same time, the dollar is rising against other currencies.
The market reaction indicates that former Fed Governor Kevin Warsh is seen as less of a monetary policy risk-taker by President Donald Trump than other candidates who have been considered for nomination.
Trump has promised to announce on Friday who he wants to replace current Fed Chairman Jerome Powell.
