Gold traded lower on a stronger U.S. dollar. The greenback rose against the other major currencies after the release of the better-than-expected U.S. consumer confidence index. The Conference Board's consumer confidence index for the U.S. rose to 101.4 in June from 94.6 in May, exceeding expectations for a rise to 97.2. May's figure was revised down from 95.4.

The increase was driven by the better outlook for both current conditions and expectations for the next six months.

"Over the past two months, consumers have grown more confident about the current state of business and employment conditions. Overall, consumers are in considerably better spirits and their renewed optimism could lead to a greater willingness to spend in the near-term," the director of economic indicators at The Conference Board, Lynn Franco, said.

The Greek debt crisis remained in focus. According to a statement from the office of the Prime Minister Alexis Tsipras, the Greek government has requested a 2-year bailout programme from the European Stability Mechanism (ESM) to fully cover its financing needs, including restructuring of debt.

Athens said that it will continue debt talks seeking a "viable agreement" within the Eurozone.

The head of the Eurogroup Jeroen Dijsselbloem said on Tuesday that Eurozone finance ministers will have a teleconference today at 17:00 GMT to discuss the latest proposals from Greece to keep the bailout negotiations going.

"Extraordinary Eurogroup teleconference tonight 19:00 Brussels time to discuss official request of Greek government received this afternoon", he twitted.

August futures for gold on the COMEX today declined to 1168.20 dollars per ounce.