International gold prices rose more than 5% in the first quarter. Russia continues to stick to this position.

On Thursday (March 31), international gold prices fell to range trading, but the quarterly line rose more than 5%, which is expected to be the biggest increase since September 2020, as the conflict between Russia and Ukraine enhanced the attractiveness of gold.

15:32 Beijing time, spot gold fell 0.18% to $1928.95 / oz; COMEX gold contract fell 0.28% to $1933.5 / oz; and the dollar index rose 0.01% to 97.836.

Michael McCarthy, chief strategy officer at Tiger Brokers in Australia, said: "Gold traders are weighing geopolitical risks against the potential for further rises in inflation and the dangerous prospect of holding gold when interest rates rise, and as a result we are back in the middle of the trading band."

Ukrainian President Zelansky said Thursday that Ukrainian troops are preparing for a new Russian attack on the ground as Moscow rallies troops in eastern Ukraine after a setback near the capital, Kiev.

Russia's chief negotiator, Mezinsky, said on Wednesday (March 30) that Ukraine had expressed its willingness to meet Russia's core demands, but Russia's position on the Donbass region and annexed Crimea had not changed.

VTB, Russia's second-largest bank, has sold a tonne of gold to customers this month and demand is expected to increase. Dmitriy Breytenbikher, senior vice president of VTB, said in a statement that in the case of "increased uncertainty", investors diversify their portfolios by buying money, preserve their assets and save for the next generation.

Russian interest in investing in gold and buying physical gold has surged in the past four weeks as a result of sanctions. Demand was further boosted by the Russian government's cancellation of the VAT on gold purchases this month.

Russian gold miners Polymetal and Petropavlovsk warned on Wednesday that they faced a growing number of obstacles and challenges to doing business, including rising operating costs and repayment of loans to sanctioned banks.