The CEO of Evolve Holding for Investment, Dr. Sameh El-Torgoman, said that gold prices are still moving within a sideways range between just below $4,000 and $4,300 per ounce, explaining that central bank purchases will drive gold prices in the coming period.

El-Torgoman explained in an interview with Al Arabiya Business that the main driver of gold prices currently is the continued strengthening of central bank purchases, led by China, which continues to demand gold.

He added that China's announcement of purchasing 15 tons of gold in June reflects its continued approach of capitalizing on price declines, expecting that central banks, especially China, will continue to increase their gold reserves in the coming period amid the uncertainty facing the global economy.

He pointed out that developments related to US monetary policy and global inflation enhance the importance of gold for central banks, noting that inflationary pressures, including those resulting from rising agricultural product prices, could affect the course of monetary policies and interest rate decisions, which will have direct implications for gold movements.

El-Torgoman stressed that gold's role is not limited to being a safe haven, but it serves two main functions: first, it is an indicator of the strength or weakness of currencies, often moving inversely to the dollar; second, it is a tool to protect purchasing power amid inflation.

He explained that inflation erodes the value of currencies, which enhances gold's importance as a value-preserving asset for both individuals and central banks, expecting gold's strategic role to increase in the coming period in supporting currency stability and official reserves.

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