Gold slid below $1,200 an ounce on Tuesday after the euro zone’s finance ministers approved Greece’s new bailout plan, after Athens submitted reform proposals in the 11th hour.
Strength in the dollar ahead of Federal Reserve Chair Janet Yellen’s Senate testimony added to pressure on gold. Investors are awaiting her comments for clues on the timing of the first U.S. interest rate rise in nearly a decade, expected later this year.
Spot gold was down $4.20 at $1,196.60 an ounce, while U.S. gold futures for April delivery fell $5 an ounce to $1,195.80.
European shares rose on Tuesday and Greek shares outperformed after a list of proposed reforms submitted by Greece was received favorably by the European Commission.
The dollar rose on expectations that Yellen would keep the Federal Reserve nudging towards U.S. rate increases.