Cocoa and gold have been projected to record strong performances on the commodity market, according to analysts.
Databank Research’s market outlook for 2025 indicates that the Gold price, which surged by 25.6% in 2024 due to geopolitical tensions and inflation concerns, is anticipated to rise further this year. Gold prices are expected to range between US$2,600 and US$3,100 per ounce, driven by potential interest rate cuts from the U.S. Federal Reserve and sustained demand for gold from central banks. Gold serves as the most preferred store of value during periods of currency markets volatility.
Cocoa prices are also forecasted to remain elevated, closing this year between US$ 7,000 and US$ 9,600 per tonne. However, amidst the optimism concerning cocoa and gold prices, the price of benchmark Brent crude oil is projected to continuously face difficulties.
Ghanaian investors are encouraged to diversify their portfolios by considering gold-backed securities, such as the Ghana Gold Coin introduced by the Bank of Ghana, as a hedge against economic uncertainties. However, they should prudently measure the upside potential for gold prices against cedi – dollar exchange risks; it is instructive that the cedi price of the BoG Gold Coins fell during the last weeks of 2024 due to the appreciation of the cedi against the US dollar.
Persistent supply challenges, exacerbated by the implementation of the EU Deforestation Regulation, are expected to constrain global cocoa output.
Conversely, Brent crude oil prices, which declined by 20.31% in 2024, are projected to stabilize below US$ 76 per barrel in 2025. Factors such as high U.S. inventories, economic slowdowns in major consuming nations, and a global shift toward cleaner energy are likely to weigh on demand.
With these trends, 2025 presents diverse opportunities for investors, particularly in gold and cocoa, while the oil market may require cautious navigation amidst ongoing challenges.
