With recession looming in the US, some analysts say the Fed may change its monetary policy, which would be good for gold. Nicky Shiels, head of metals strategy at MKS PAMP, revealed that she is paying close attention to the copper/gold ratio because it serves as an indicator of the market's risk appetite and direction of interest rates.

Copper prices have been falling in recent months as investors deem that a slowdown in economic growth will reduce demand. It lost more than 26% this year, and is currently trading at the lowest level.

Gold also fell by nearly 7%

Shiels said the sharp decrease in copper and gold creates deflationary signals for the market, but the ratio compared to US interest rates indicates a stable stagflationary environment.

The ratio of copper/gold to interest rates reportedly fell to 4.3 points, which could be an important level for future monetary policy. This may indicate that the central bank's monetary policy is already too tight, especially since in the past, the copper-to-gold ratio dropping below 4 marks the end of the Fed's cycle of raising rates.

So, being at 4.3 indicates that this could be the last rate hike by the Fed.