Gold price declined on a stronger U.S. dollar. The greenback rose on comments by the Fed Chair Janet Yellen. She testified for a second day before the Senate Banking Committee. Yellen repeated that she expects the U.S. economy to strengthen in the rest of the year, and that the Fed could raise its interest rate "at some point this year".

Increase in European stock markets also weighed on gold price. European stock markets rose as the Greek parliament has approved reforms demanded by Greece's creditors in return for the third bailout programme on Wednesday.

European Commission President Jean-Claude Juncker said on Thursday that European Union finance ministers agreed to provide a €7 billion bridge loan to Greece until the third Greek bailout programme will be set up. The bridge loan would come from the European Financial Stabilization Mechanism.

Greece could use the bridge loan to repay ECB and IMF loans.

August futures for gold on the COMEX today declined to 1143.10 dollars per ounce.