Gold and cocoa markets are expected to perform strongly in 2025, contrasted by a downturn in Brent crude oil prices.
This outlook stems from geopolitical tensions, anticipated interest rate reductions by the U.S. Federal Reserve, and supply shortages.
Conversely, Brent crude oil prices are projected to decline due to high US inventories and the global transition toward sustainable energy solutions.
According to Databank Research, gold prices may range between US$2,600 and US$3,100, while cocoa could climb to US$7,000–US$9,600 per metric ton.
“We expect gold prices to trade higher in 2025, ranging from US$2,600-US$3,100 on the prolonged effect of geopolitical tension. We are optimistic about a recovery in gold prices throughout 2025 as geopolitical uncertainties are likely to drive safe-haven demand.
“Additionally, we foresee further interest rate cuts by the US Fed in 2025, which could drive gold prices high, potentially reaching between US$2,600 and US$3,100 per ounce following the January 2025 FOMC meeting.” Data bank noted.
“Given the positive outlook for gold prices, we believe local investors in Ghana could diversify their portfolios by considering the New Gold ETF and the Bank of Ghana’s Ghana Gold Coin (GGC). We believe these assets provide an opportunity to benefit from rising global gold prices while serving as a hedge against local currency depreciation,” the bank added.
Cocoa prices are also projected to rise, with estimates placing them between US$7,000 and US$9,600 per ton. The increase will largely result from limited supply in Ghana and Côte d’Ivoire due to lingering effects of adverse weather conditions and disruptions caused by illegal mining activities.
“We assert that the EU Deforestation Regulation (EUDR), effective in early 2025, will further restrict supply availability, likely keeping prices elevated amid strong global demand for chocolate.”
Meanwhile, Brent crude oil is expected to trade below US$76 per barrel in 2025.
“Our outlook remains cautious as major consumers, such as China and North America, face economic challenges alongside increasing demand for sustainable energy sources. Consequently, global oil demand growth is projected to decline from 1.74 million barrels per day (bpd) to 1.64 million bpd in 2025.” Data bank highlighted in its report.
The decline in demand reflects broader economic uncertainties and a global shift toward alternative energy sources.
