Gold is currently at $1,176.40 (+0.30%) an ounce. The safe-haven metal advanced after optimism about Greek deal contracted as creditors handed Greece's officials a revised set of proposals.

Physical demand in Asia is weak partly due to seasonal factors and further declines in prices will be needed to revive it.

In an attempt to give China more influence over the pricing of the precious metal, the Shanghai Gold Exchange plans to launch a yuan-denominated gold fix by the end of 2015. "The aim is to provide a more diversified benchmark pricing to the industry," Shen Gang, vice president of the Shanghai Gold Exchange, said.