Gold dropped slightly on growing investors’ appetite for risk after Greece looked increasingly likely to push through austerity measures, which offset the potentially bullish impact of a weaker dollar.

During the past three months gold has been benefiting from the investor concerns over Greece's potential to affect the rest of the euro zone economy, of the triple disaster in Japan and over the outlook for global economic growth.

According to estimates the precious metal will grow by 5.5% compared with decline of 1.4% in the S&P 500, 4.8 percent in crude oil LCOc1 and 2.8 percent in emerging equities in this time.

On Wednesday Greek parliament passed the first of the two austerity measures and it is expected to vote in favor of final austerity bill later on Thursday.

Spot gold was down 0.1 percent at $1,509.20 an ounce by 1000 GMT, after rising for two straight sessions. U.S. gold GCcv1 was flat at $1,510.40.

"Gold has got to stay supported, however this plays out. The fact is Greece is bankrupt and some restructuring is inevitable," said Credit Agricole analyst Robin Bhar.

"We are going into the summer season...but I can see gold holding and consolidating. With all these issues still to be addressed and what to do with Greece, I can't see any other way but to remain generally in a broad range."