Ghana: Press spotlights Fed rate cuts, gold price forecast for 2024, others

APA – Accra (Ghana)
The report that Gold prices surged in the last few months of 2023 after a powerful rally was sparked by central bank purchasing and mounting investor concern over the Israel–Hamas and Russia–Ukraine conflicts is one of the leading stories in the Ghanaian press on Tuesday.
The Graphic reports that Gold prices surged in the last few months of 2023 after a powerful rally was sparked by central bank purchasing and mounting investor concern over the Israel–Hamas and Russia–Ukraine conflicts.
A falling U.S. dollar and expectations of Federal Reserve (Fed) rate cuts further boosted bullion prices, which hit a record high of $2,135.39/oz in December.
After a hiking cycle that pushed the Fed funds rate to its highest in more than 22 years, policymakers on the Federal Open Market Committee (FOMC) have indicated at least three rate cuts in 2024, as inflation eases from the 40-year highs seen in mid-2022.
With gold prices hovering around $2,000/oz, is another bullish run expected for the precious metal as rates begin to fall?
“Commodities are unlikely to benefit from core inflation in 2024.
Inflation should fall to under three per cent, so that, along with properly timing the business cycle, are the two conditions needed to initiate long positions, making the outlook for the sector very tactical in 2024,” said Natasha Kaneva, Head of Global Commodities Strategy at J.P. Morgan.
“Across commodities, for the second consecutive year, the only structural bullish call we hold is for gold and silver.”
Economic and geopolitical uncertainty tend to be positive drivers for gold, which is widely seen as a safe-haven asset due to its ability to remain a reliable store of value.
It has low correlation with other asset classes, so can act as insurance during falling markets and times of geopolitical stress.
A weaker U.S. dollar and lower U.S. interest rates also increase the appeal of non-yielding bullion.
The newspaper says that the Ghana Irrigation Development Authority (GIDA) will start the Afram Plains Economic Enclave Irrigation Project (APEEIP) this month as part of interventions to increase food production, create jobs and reduce the country’s import bill.
The irrigable area to be developed under the APEEIP project, GIDA’s major intervention this year, is 3,500 hectares (ha) for allocation to over eight commercial farmers and 1,000 outgrower farmers.
GIDA, an agency of the Ministry of Food and Agriculture (MoFA), explained that 70,000 tonnes of cereals and 50,000 tonnes of vegetables are projected to be produced to rake in over GH¢716.85 million per year under APEEIP.
More than 2,000 direct and indirect jobs are expected to be created under the APEEIP project alone.
The Chief Executive Officer (CEO) of GIDA, Richard Oppong-Boateng, disclosed this in an exclusive interview with the Daily Graphic in Accra last weekend.
He explained that the potential of the APEEIP, when fully harnessed, would serve as the green revolution and a game-changer for production of crops such as cereals and vegetables.
“Harnessing the potential of the area requires development of irrigation infrastructure to support all-year-round agricultural production,” the geodetic engineer stated.
Mr Oppong-Boateng said the identified areas under the project had been zoned into four.
They are the Kwahu Afram Plains South and Kwahu Afram Plains North as Zone one; Kwahu East, Kwahu West and Kwahu South as Zone two; Fanteakwa, Birim North, Kwaebibirem, Atiwa and Denkyembour as Zone three, and Sekyere Afram Plains and Sekyere Kumawu as Zone four.
The GIDA chief executive said the areas identified had arable land and abundant water resources made up of streams, rivers and the Volta Lake that would support crop production.
The Ghanaian Times reports that the Vice President, Dr Mahamudu Bawumia, has announced that government was in the process of procuring 100 brand new electric buses for the Metro Mass Transit by the end of the year.
He said the 100 electric buses were to augment the exiting buses of the company, including the 100 new DAF buses recently procured to enhance its operations and bolster profit for sustainability.
Dr Bawumia disclosed this at the official launch of a new digital platform for public commercial transport operators dubbed: “Tap & Go” in Accra yesterday.
Tap and Go is a single system common platform created for the entire transport ecosystem, including both inter and intra city bus services, the trotro, loading taxi service and the demand for Uber services.
Dr Bawumia explained the solution to addressing a number of challenges that confronted public commercial transportation was to provide a single transport card for all commuting payments.
He said the new tap and go system was equipped with additional features tailored to support various modes of transportation, including parcel delivery and tracking, taxi hailing, intercity bus services, inner city bus service such as metro mass, ayalolo, adding, “Soon we are looking forward to bringing on board the GPRTU Trotro services which will be integrated seamlessly.”
The Vice President noted that the tap and go project aimed at revolutionising public transport experience by helping curb some age-old problems associated with the public transport system.
The newspaper says that Access Bank Ghana PLC has signed a partnership with Mac Autos & Spare Parts Limited and MG Auto Trading Ghana Limited, leading automobile companies, to enhance vehicle ownership in the country.
Under the agreement, Access Bank Ghana PLC would provide both public and private sector workers with low interest rate loans to purchase the range of vehicles sold by Mac Auto & Spare Parts Limited and MG Auto Trading Ghana Limited.
The two automobile companies, on the other hand, will offer discounts to individuals who want to purchase a vehicle with finance from Access Bank Ghana PLC.
Speaking at a short ceremony at the Spintex Road Showroom of Mac Autos in Accra on
Wednesday to seal the partnership arrangement, the Group Head for Business Banking at Access Bank Ghana PLC, Kafui Bimpe, said transportation, an indispensable facet of human existence, often presented challenges for individuals and families alike.
“In our unwavering commitment to addressing the mobility needs of customers, we stand here today to forge alliances with Mac Autos and Spare Parts Ghana Limited and MG Auto Trading Ghana Limited, ushering in a new epoch of accessible and affordable vehicle ownership in Ghana,” he stated.
The Country Head of Mac Autos, Mr Raman Malhotra, in his remarks, said Mac Autos was a leading automobile company in Africa.
He said the company was one of the leading representatives of the various major automotive brands in the world.
GIK/APA