Gold prices fell on Tuesday as the prospect that Greece would default on a repayment to the International Monetary Fund knocked the euro against the dollar, and as investors remained wary over the metal’s longer-term prospects.

The chairman of the Eurogroup said it was too late to extend Greece’s existing bailout and that the country’s stance toward its creditors and euro zone partners would have to change before a new program could be agreed.

Spot gold fell 1.2 percent to the lowest since June 5 at $1,166.35 an ounce, but was down 0.7 percent at $1,171.05 at 2:58 p.m. EDT. It was on track to close the second quarter down 1 percent, its fourth straight quarterly fall.

U.S. gold futures for August delivery settled down $7.20 an ounce at $1,171.80.

Source : Reuters