The yellow metal lost bite as Gold trail back on Thursday after fears that Greece may be pushed out of the euro, and China’s stock market rout, ebbed, dimming the safe haven appeal of the bullion. Grexit fears waned as Greece submitted a fresh reform package that included spending cuts including those on pensions, and sales tax hikes, similar to those demanded by the country’s creditors aimed at winning new European bailout aid. Greece also proposed a debt restructuring proposal and a growth package of 35 billion euro.

The proposal will need a Greek Parliamentary vote due on Friday, while Greece’s request for fresh rescue aid will be discussed at an EU summit on Sunday.

China’s Shanghai Composite scripted the biggest rebound since 2009 as officials helped restore some confidence in the stock market after banning insiders from selling shares in listed companies while allowing banks to roll over loans backed by shares.

A powerful dollar also dimmed the lure for Gold as an alternative asset. powerful greenback makes Gold more costly for those holding other currencies.

However, speculation that the Fed may push back tightening rates for the first time since 2006 amid a spike in weekly jobless claims bolstered Gold’s appeal as a store of value, trimming losses in the precious metal. The FOMC minutes stressed that officials are awaiting a further evidence of     powerful economic growth including a pickup in consumer spending before deciding to tighten policy.

Gold may rebound today as a reduction in global growth forecasts by the IMF may revive Gold’s safe haven lure, while investors will eye Fed’s Yellen speech for more cues over timing of a rate hike.

At the MCX, Gold futures for August 2015 contract ended at Rs 26,064 per 10 gram, down by 0.57 %  after starting at Rs 26,202, opposed the previous closing price of Rs 26,213. It touched the intraday low of Rs 26,040 till the ended.