Gold is currently at $1,185.70 (+0.14%) an ounce. The non-interest-paying metal ended Monday with a 1.3% drop amid gains in equities and hopes for a deal between Greece and its lenders. A deal would prevent default and reduce demand for safe haven.

Gold used to be supported by uncertainty over Greece, however yesterday Greece's government presented new budget proposals and they may form a base for an agreement by the end of this week.

If the Greek factor is eliminated, bullion will respond to its fundamentals, which don't look encouraging considering a relatively strong U.S. dollar.