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By Bloomberg

Gold fell for a second day after Greece reached a deal that could pave the way for a new bailout, damping demand for the metal as a haven asset and shifting investors’ focus to the probable timing of a U.S. rate increase.

Bullion for immediate delivery lost 0.3 percent to $1,154.93 an ounce at 2:36 p.m. in Singapore, according to Bloomberg generic pricing. The metal declined as much as 1.1 percent on Monday to $1,151.27, the lowest price since July 8.

Gold dropped 2.5 percent this year as the Federal Reserve signaled it planned to boost rates. Fed Chair Janet Yellen maintained her call on Friday for an increase this year, and the rate-setting Federal Open Market Committee will gather at the end of the month to assess the economic recovery. While equities extended a rally into Tuesday as the Greek deal was announced, the plan may yet come unstuck as the terms require approval from Greece’s parliament this week.

“A resolution to the Greek crisis will allow the FOMC to place greater emphasis on the solid momentum in the U.S. economy,” Australia & New Zealand Banking Group Ltd. said in a note. A liftoff later this year is still on track, it said.

Higher rates curb the appeal of bullion, which doesn’t pay interest or give returns like assets such as bonds. The Bloomberg Dollar Spot Index was little changed on Tuesday after rising 0.6 percent on Monday. An appreciating dollar tends to restrict gold’s gains.

Futures for delivery in August fell 0.2 percent to $1,153.40 an ounce on the Comex in New York. Silver for immediate delivery was 0.9 percent lower at $15.3783 an ounce.

Platinum dropped 0.4 percent to $1,029.60 an ounce after two days of gains as prices rebounded from a six-year low of $1,010.26 on July 8. Palladium declined 0.6 percent to $656.80 an ounce after dropping to a two-year low of $630.35 last week.