Gold traders foresee gold rising to $2,100 and possibly as high as $2,500 in 2024 as recessionary fears continue to hang in the balance, CNBC reports.

In addition to economic uncertainty around the globe, analysts say, the prospect of falling interest rates, central bank purchases and growing demand for gold jewelry are all pushing up the price of gold, currently trading at $1,917.99 an ounce.

In the past 12 months, Gold has outperformed most major asset classes, wrote Bart Melek, managing director and global head of commodity strategy at TD Securities, in a recent research note.

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“My target is $2,500 by the end of 2024,” said David Neuhauser, founder of Livermore Partners, which would be a 26% increase from current levels.

“Much of this has to do with the fact that recessionary forces may take hold beginning later this year and gain steam in 2024, [which is when] I see gold breaking out and reaching new highs,” Neuhauser said.

Gold performs well during periods of uncertainty, as people flock to safe havens. It’s also a hedge against inflation.

Furthermore, Gold increases in value when interest rates, widely believed to be at their peak, decrease; investors tend to leave alternative investments like bonds and move into gold when interest rates are going down.

Globally, Neuhauser expects inflation to remain elevated between 3% and 5%, causing stagflation to persist for a few years.

“I’m pretty confident that within a couple of years, we will see $2,500 gold,” concurred Wheaton Precious Metals CEO Randy Smallwood. “Any type of recessionary move would be positive for gold.”

“I do see gold move above $2,100 in late 2023, early 2024 as a trading level,” Melek said. “I believe that the Fed will tilt policy away from its current restrictive mode. This I believe will happen before the 2% inflation target is reached.”

Heng Koon How, head of markets strategy at UOB, said Chinese and Indians are buying more physical gold jewelry, as their economies have stabilized and retail spending has ticked up.

Additionally, central bank purchases of gold bullion have been “consistently strong,” Heng added.

Nicky Shiels, head of metals strategy at precious metals company MKS PAMP, noted, “Emerging market central banks continue to de-dollarize and utilize gold as an alternative in the event of any further sanctions.”

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