Gold and Cocoa to Shine, Crude Oil to Dim in 2025: Databank Research
Gold prices projected to reach US$2,600-US$3,100 per ounce driven by geopolitical tensions and potential US Fed interest rate cuts.
- A new report from Databank Research forecasts a divergence in commodity prices this year
- Gold prices are projected to reach a lofty range of US$2,600 to US$3,100 per ounce
- Brent crude oil is expected to face headwinds from economic challenges
A new report from Databank Research forecasts a divergence in commodity prices this year, with gold and cocoa poised for significant gains while Brent crude oil is expected to decline.
Gold: A Safe Haven in Turbulent Times
Gold prices are projected to reach a lofty range of US$2,600 to US$3,100 per ounce, driven by a confluence of factors. Persistent geopolitical tensions are expected to fuel safe-haven demand, propelling investors towards the precious metal.
Furthermore, the anticipated implementation of further interest rate cuts by the US Federal Reserve is likely to weaken the dollar and boost gold’s appeal as an inflation hedge.
Cocoa: Supply Crunch Drives Prices Higher
Cocoa prices are forecast to soar to between US$7,000 and US$9,600 per ton. This bullish outlook is primarily attributed to significant supply constraints. Ghana and Côte d’Ivoire, the world’s leading cocoa producers, are facing challenges in recovering from adverse weather conditions.
Crude Oil: A Cloudy Forecast
In contrast to the bullish outlook for gold and cocoa, Brent crude oil prices are expected to trade below US$76 per barrel. This bearish forecast stems from several factors.
Firstly, major oil-consuming nations, such as China and North America, are grappling with economic challenges that are expected to dampen oil demand growth. This slowdown is further compounded by the accelerating global transition towards cleaner energy sources.
Conclusion
Databank Research’s 2025 commodity outlook paints a picture of divergent market trends. While gold and cocoa are poised for significant price increases due to geopolitical uncertainties, supply disruptions, and robust demand, Brent crude oil is expected to face headwinds from economic challenges, high inventories, and the growing emphasis on sustainable energy.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
