Gold, cocoa prices to surge in 2025, but crude oil to tumble – Report

Gold and cocoa prices are projected to experience significant gains in 2025, while Brent crude oil prices are expected to decline, according to a forecast by Databank Research.

The anticipated performance of gold and cocoa will be driven by factors such as geopolitical tensions, potential interest rate cuts by the US Federal Reserve, and supply shortages.

Gold prices are predicted to rise within a range of $2,600 to $3,100 per ounce. Databank Research attributes this to sustained geopolitical uncertainties, which are expected to fuel demand for safe-haven assets like gold. Additionally, further interest rate reductions by the US Federal Reserve in 2025 could bolster gold prices.

“We anticipate gold prices trading higher throughout 2025, ranging from $2,600 to $3,100 per ounce, as prolonged geopolitical tensions and US Fed rate cuts boost demand,” the report noted. The research also highlighted that the January 2025 FOMC meeting could set the tone for further upward momentum in gold prices.

Local investors in Ghana are encouraged to take advantage of this trend by exploring gold-backed assets such as the New Gold ETF and the Bank of Ghana’s Ghana Gold Coin (GGC). These assets, according to the report, offer dual benefits: capitalizing on rising global gold prices and providing a hedge against local currency depreciation.

Cocoa prices are also expected to see a substantial increase, potentially reaching between $7,000 and $9,600 per metric ton. This surge will likely be driven by supply challenges in Ghana and Côte d’Ivoire, two of the world’s largest cocoa producers, as they recover from adverse weather conditions. Illegal mining activities in Ghana, which have disrupted cocoa farming, are also contributing to reduced output.

Furthermore, the introduction of the EU Deforestation Regulation (EUDR) in early 2025 is expected to tighten global supply further. “The EUDR will likely constrain cocoa supply, keeping prices high amid strong global demand for chocolate,” the report explained.

In contrast, Brent crude oil prices are forecast to decline, trading below $76 per barrel in 2025. Databank Research points to high US oil inventories and a growing shift toward cleaner energy as the primary factors for this downturn.

“Economic challenges in major markets like China and North America, combined with rising demand for sustainable energy, will dampen global oil demand,” the report stated. It also predicts a slowdown in global oil demand growth, from 1.74 million barrels per day (bpd) in 2024 to 1.64 million bpd in 2025.

This decline in demand reflects broader economic uncertainties and an accelerating transition to renewable energy sources, further signaling a shift in the global energy landscape.

Gold and cocoa prices are projected to experience significant gains in 2025, while Brent crude oil prices are expected to decline, according to a forecast by Databank Research.

The anticipated performance of gold and cocoa will be driven by factors such as geopolitical tensions, potential interest rate cuts by the US Federal Reserve, and supply shortages.

Gold prices are predicted to rise within a range of $2,600 to $3,100 per ounce. Databank Research attributes this to sustained geopolitical uncertainties, which are expected to fuel demand for safe-haven assets like gold. Additionally, further interest rate reductions by the US Federal Reserve in 2025 could bolster gold prices.

“We anticipate gold prices trading higher throughout 2025, ranging from $2,600 to $3,100 per ounce, as prolonged geopolitical tensions and US Fed rate cuts boost demand,” the report noted. The research also highlighted that the January 2025 FOMC meeting could set the tone for further upward momentum in gold prices.

Local investors in Ghana are encouraged to take advantage of this trend by exploring gold-backed assets such as the New Gold ETF and the Bank of Ghana’s Ghana Gold Coin (GGC). These assets, according to the report, offer dual benefits: capitalizing on rising global gold prices and providing a hedge against local currency depreciation.

Cocoa prices are also expected to see a substantial increase, potentially reaching between $7,000 and $9,600 per metric ton. This surge will likely be driven by supply challenges in Ghana and Côte d’Ivoire, two of the world’s largest cocoa producers, as they recover from adverse weather conditions. Illegal mining activities in Ghana, which have disrupted cocoa farming, are also contributing to reduced output.

Furthermore, the introduction of the EU Deforestation Regulation (EUDR) in early 2025 is expected to tighten global supply further. “The EUDR will likely constrain cocoa supply, keeping prices high amid strong global demand for chocolate,” the report explained.

In contrast, Brent crude oil prices are forecast to decline, trading below $76 per barrel in 2025. Databank Research points to high US oil inventories and a growing shift toward cleaner energy as the primary factors for this downturn.

“Economic challenges in major markets like China and North America, combined with rising demand for sustainable energy, will dampen global oil demand,” the report stated. It also predicts a slowdown in global oil demand growth, from 1.74 million barrels per day (bpd) in 2024 to 1.64 million bpd in 2025.

This decline in demand reflects broader economic uncertainties and an accelerating transition to renewable energy sources, further signaling a shift in the global energy landscape.