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Gold prices to rise in 2025 due to US interest rate cuts, others - Databank Research
Gold prices to rise in 2025 due to US interest rate cuts, others - Databank Research
By: Abigail | 2 mins read
Gold prices are projected to experience a significant surge in 2025, according to the latest projections from Databank Research in its Ghana Market Outlook 2025 report, released in January.
Currently, the price of gold stands at approximately $2,693.60 per ounce. The anticipated rise in gold prices, according to Databank Research, will be driven by global political tensions and possible interest rate reductions by the US Federal Reserve.
“We believe 2025 will be a promising year for gold. We expect prices to rise between USD 2,500 and USD 3,100, supported by geopolitical tensions and potential interest rate cuts by the US Federal Reserve,” parts of the 37-page report noted.
In light of this, the report advised local investors to diversify their portfolios by considering financial products linked to gold, such as gold-backed securities.
“We recommend that local investors diversify their portfolios into gold-backed securities to capitalize on this potential price increase and hedge against the local currency depreciation,” the document further stated.
The report provides a comprehensive analysis and forecast of Ghana's economic and market conditions for the year, highlighting key trends that could influence the performance of key sectors.
A rise in gold prices presents positive prospects for Ghana's economy, given the significant contribution of the mining sector to the nation's revenue. The mining sector remains the largest taxpayer, contributing 22.7% of Ghana's direct taxes. In 2023 alone, the gold mining industry generated GH₵11.55 billion (US$980 million) in taxes.
Higher gold prices could further strengthen Ghana's currency by increasing export earnings and foreign exchange reserves, as gold mining plays a pivotal role in the country’s economy.
In 2023, the mining sector accounted for 47.4% of Ghana's nominal GDP and 17.1% of its real GDP. Gold exports alone made up 62.1% of the country’s total export income.
