Gold price traded lower ahead of the Eurogroup's meeting on Saturday. If a deal is not reached at Saturday's meeting, officials are expected to start preparing a "Plan B" to protect the Eurozone from damaging other countries in the Eurozone.

German Chancellor Angela Merkel said on Friday that the Eurogroup's meeting on Saturday would be decisive for finding a deal for Greece.

The Guardian reported on Friday that the Greek government rejected a five-month extension to its bailout deal.

According to a European official, Greece's lenders offers a financial aid of €15.5 billion in four instalments by the end of November if Greece implements economic reforms. Greece would receive the first instalment of €1.8 billion by Tuesday.

European Commission President Jean-Claude Juncker said on Friday that he was optimistic a deal with Greece could be reached.

A stronger U.S. dollar also weighed on gold price. The greenback rose against other major currencies on the better-than-expected final Reuters/Michigan Consumer Sentiment Index. The index increased to 96.7 in June from 90.7 in May, beating the preliminary estimate of 94.6.

Holdings of the t gold ETF, SPDR Gold Shares, climbed 6.9 tonnes on Thursday. It was the biggest one-day rise since Febuary 2.

August futures for gold on the COMEX today fell to 1167.10 dollars per ounce.