Gold prices hit new highs as investors anticipate a September rate cut from the Federal Reserve and a weaker dollar. US jobs data points to a labor market slowdown, reinforcing expectations for a rate cut. Gold’s rally prompts concerns of being overextended, but central banks continue to add to their gold reserves.

Analysts at Goldman Sachs predict gold could reach $5,000 by the end of next year, calling it their “highest conviction” commodities trade. The US dollar index has dropped over 9% this year, supporting gold prices. Central banks have been steadily increasing their gold reserves, with foreign holdings now exceeding US Treasurys.

Read more at Yahoo Finance: Gold hovers near $3,700 as Fed rate cut bets and weaker dollar drive demand