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By Bloomberg

Gold declined as a stronger dollar, rising equities and easing of tensions in the Middle East countered concern that Greece may default. Investor assets expanded.

Bullion for immediate delivery fell 0.2 percent to $1,199.93 an ounce at 1:07 p.m. in Singapore, erasing a 0.2 percent gain, according to Bloomberg generic pricing. The metal rose 0.6 percent on Tuesday, the most since April 15. Gold in Shanghai advanced after dropping the most in more than a week.

Asian stocks headed for a seven-year high and the Bloomberg Dollar Spot Index held a two-day gain, paring demand for alternative assets. Investors are assessing the outlook for Greece, with the euro area viewing the end of June to be its main deadline to unlock aid as expectations of a deal before April 30 decline, a European Union official said on Tuesday. Holdings in exchange-traded products backed by gold increased for a third day to the highest level since March 25.

“Firmness in U.S. dollar and easing tensions in Middle East has resulted in some correction in gold,” Kotak Commodity Services Ltd. wrote in a report. “However, supporting the price is ETF inflows, which shows pickup in investor interest. Also supporting the price is concerns about Greece debt deal.”

Saudi Arabia called a halt to its campaign of airstrikes in Yemen, saying its goals were achieved and the focus will move to political talks. The bombardment had spurred concern that the conflict may spread and could disrupt energy supplies.

Assets in gold-backed ETFs increased 0.2 percent to 1,624.54 metric tons on Tuesday, according to data compiled by Bloomberg. The third day of expansion was the longest since the period to Feb. 24.

Gold for June delivery lost 0.3 percent to $1,199.30 an ounce on the Comex. Bullion of 99.99 percent purity climbed 0.5 percent to 239.65 yuan a gram ($1,203.40 an ounce) on the Shanghai Gold Exchange after dropping 1.3 percent on Tuesday.

Silver for immediate delivery fell 0.2 percent to $16.0017 an ounce. Platinum lost 0.4 percent to $1,145.50 an ounce, while palladium dropped 0.3 percent to $767.50 an ounce.