Analyst: The cost of holding gold is becoming increasingly high.

Stronger-than-expected non-farm payroll data in May in the United States triggered market concerns about a possible interest rate hike by the Federal Reserve later this year. On Friday, heavily crowded and high-valued AI and technology-related US stocks suffered a sharp drop, while gold and silver prices also plummeted. Ryan Detrick, Chief Market Strategist at Carson Group, stated, "In the past nine weeks, the technology and semiconductor sectors have experienced record-breaking rallies, and today the market dam finally burst. The stronger-than-expected jobs report has put the Fed in a dilemma on whether to cut interest rates for the remaining of the year, and the market is expressing its dissatisfaction by selling the best-performing stocks of the year." Phil Streible, Chief Market Strategist at Blue Line Futures, noted that some investors are reducing their gold holdings to offset losses in other assets, exacerbating the selling pressure on precious metals. Bart Melek, Director of Global Commodity Strategies at TD Securities, said, "The non-farm payroll data is significantly higher than market expectations. With ongoing conflicts in the Middle East, high energy prices, and significant inflation pressures, the Federal Reserve has almost no willingness to cut interest rates. In this context, holding onto gold is becoming increasingly costly."