Gold fell on Thursday on uncertainty in Greece after the European Central Bank said it would no longer accept Greek bonds in return for funding.
The ECB's announcement dealt a blow to Athens, which is seeking debt relief from eurozone lenders, and knocked the euro down against the dollar in early trading. Gold dipped despite the euro's rebound against the dollar after positive German data.
Spot gold was down 0.5 percent at $1,263.50 an ounce by 2:22 p.m. EST (1922 GMT) after falling 1 percent to the session low at $1,256.22. The market has tested support around $1,255 to $1,256 in four out of five sessions, causing traders to suspect sell-stops are resting below this level.
U.S. gold futures for April delivery settled down 0.1 percent at $1,262.70 an ounce.
