Gold fell on Wednesday, as the dollar strengthened and hopes for progress in the Greek crisis revived after the country told international creditors Athens could accept their bailout offer if some conditions were changed.
The Greek situation has failed to spark robust safe-haven bids for gold, with bullion investors still focused on an expected increase in U.S. interest rates after more strong economic data.
"It's not clear whether it's good for gold because people think the dollar might rally and institutional investors are less interested in the gold market," Macquarie analyst Matthew Turner said.
"Everyone says this crisis should be good for gold, but no one has made a convincing case on who should be buying gold ... Greeks are going to hold euros."
Spot gold was down 0.3 percent at $1,169.10 an ounce, still near the previous session's low of $1,166.35, which was the lowest since June 5.
U.S. gold futures for August delivery settled down $2.50 an ounce at $1,169.30.