Gold struggled close above its four-week low Wednesday, as the dollar stood firm after Greece missed a loan payment to the IMF.

The Greek debt crisis has failed to spark robust safe-haven bids for gold, with bullion investors still worried about an expected US rate hike later this year.

Spot gold edged up 0.2 percent to $1,174.25 an ounce by 0641 GMT, but largely held on to Tuesday's 0.7 percent loss. It fell to $1,166.35 in the previous session, its lowest price since June 5.

Greece made last-minute overtures to its international creditors for financial aid Tuesday, but it was not enough to save the country from becoming the first developed economy to default on an IMF loan.

With its missed payment to the IMF, Greece is on a path out of the euro with unforeseeable consequences for both the EU's grand currency project and the global economy.

"We are seeing some beginning-of-the-month buying for gold, which is pushing up prices slightly today," said a precious metals trader in Hong Kong.

"But the Greek situation itself has been disheartening for gold. People don't seem to be worried about the contagion effect, and that is clear in the gold price," he said. 

Bullion typically sees safe-haven bids during times of financial and economic uncertainty. But gold's underperformance points to much broader weakness as investors gear up for rising US rates this year.

There is still scope for the crisis to drive more risk-averse money into gold, if it worsens to the point where Greece leaves the eurozone, or if there is contagion in other economies in the bloc, such as Italy, Portugal or Spain.

With the euro on the defensive Wednesday, the dollar index edged higher for a second straight session.

The Federal Reserve is on track to raise interest rates this year, with September still "in play," a top central bank official said Tuesday, despite growing market volatility and anxiety in the wake of Greece's default.

According to data released Tuesday, US consumer confidence increased solidly in June, supporting expectations the Fed was on track to hike rates this year.

Higher rates would dent demand for non-interest-paying gold.

Reuters