Gold fell in range-bound trade on Thursday, but the safe-haven metal was set for its biggest quarterly gain since September 2020, as the Russia-Ukraine conflict lifted bullion’s appeal.

Spot gold was down 0.6% at $1,921.55 per ounce by 0507 GMT. US gold futures fell 0.7% to $1,925.00.

The metal has gained about 5% so far in the quarter and 0.7% in the month.

“Gold traders are balancing out with potential for further gains based on geopolitical risk and possibly inflation, and the dangerous outlook for gold holdings with rising interest rates and the net result has once again been that we’ve returned to the middle of the trading range,” said Michael McCarthy, chief strategy officer at Tiger Brokers, Australia.

Ukrainian forces are preparing for new Russian attacks in the east of the country as Moscow builds up its troops there after suffering setbacks near the capital Kyiv, President Volodymyr Zelenskiy said on Thursday.

Bullion is considered a safe store of value during times of political and financial uncertainty, and is viewed as a hedge against rising inflation.

Gold gains as dollar, yields weaken; Russia-Ukraine optimism weighs

However, rising interest rates increase the opportunity cost of holding non-yielding gold.

Spot silver fell 1% to $24.59 per ounce, but was on course for its best quarterly rise since June 2021.

Platinum shed 0.8% to $982.22, although it was set for the biggest quarterly gain since March 2021.

Auto-catalyst metal palladium was down 0.3% to $2,259.76, but was on course for its sharpest quarterly jump since September 2020.

“Don’t think those (platinum, palladium) are going to be dropping anytime soon, and that goes back to not official sanctions, but companies self-sanctioning themselves.

They’re scared to start buying Russian commodities because of the retribution on social media,“ said Stephen Innes, managing partner at SPI Asset Management.