Gold paused its record-breaking rally on Friday but remained on track for its strongest quarterly performance since 2016, driven by the U.S. Federal Reserve’s recent interest rate cut. Spot gold was slightly down at $2,666.50 per ounce, just below the previous session’s all-time high, while U.S. gold futures also dipped. Despite these small declines, gold has surged 29% this year, benefiting from both the Fed’s half-percentage-point cut and stimulus measures from China.

Silver followed gold’s upward trend, hitting its highest price since 2012 before easing slightly to $31.98 per ounce. Silver is set for its third consecutive week of gains, though analysts caution that the rally may lose steam. While gold and silver are both considered safe-haven assets, silver’s industrial demand ties it more closely to global economic conditions, particularly in China. As economies expand, silver tends to outperform gold, though it typically follows gold’s price movements.