(Ecofin Agency) - Gold's upward trajectory continues, setting a new historical record above $2,400 per ounce, thus getting closer to the $3,000 mark.

On Monday, May 20th, gold traded at $2,440.59 per ounce on Asian markets, marking a new record. The surge was mainly driven by renewed optimism around a potential US Federal Reserve interest rate reduction. Some traders anticipate the reduction to happen by November.

There is a negative correlation between gold and interest rates, with gold prices rising as rates fall. A rate decrease also makes other investments more attractive, contributing to gold's rally.

Gold's price is approaching Goldman Sachs' forecast of $2,700 by year-end, with Citigroup predicting a climb to $3,000 within 6 to 18 months. 

While a high gold price benefits African economies reliant on the metal, a recent Afreximbank report warns the price surge could hinder economic diversification in these countries, spur illegal mining, or lead to the "Dutch disease". According to the report, Burkina Faso, Côte d'Ivoire, Ghana, and Mali are among the countries that could be affected.