Gold and cocoa to record gains in 2025 amid global oil market challenges

The commodities market is set for contrasting outcomes in 2025 with gold and cocoa expected to deliver strong performances while Brent crude oil continues to face challenges.

This is according to a Databank Research market outlook for 2025.

Gold prices, which surged by 25.6% in 2024 due to geopolitical tensions and inflation concerns are anticipated to rise further.

According to the report, gold prices are expected to range between USD 2,600 and USD 3,100 per ounce, driven by potential interest rate cuts from the U.S. Federal Reserve and sustained demand from central banks.

Local investors in Ghana 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.

Cocoa prices are also forecasted to remain elevated, closing the year between USD 7,000 and USD 9,600 per tonne.

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 USD 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.

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