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By Bloomberg

Gold traded near the lowest in more than a week as the dollar strengthened and improving economic data backed the case for U.S. policy makers to raise interest rates.

The Bloomberg Dollar Spot Index rose for a fourth day after data on Monday showed pending sales of U.S. homes rose more than forecast in February. Federal Reserve Chair Janet Yellen said last week she expects rates to be raised this year. Higher borrowing costs cut bullion’s allure because the metal generally offers returns only through price gains.

“The two main factors weighing on gold are the data released in the U.S. yesterday and the ensuing stronger dollar,” Jonathan Butler, a precious metals strategist at Mitsubishi Corp., said by phone from London.

Bullion for June delivery lost 0.1 percent to $1,184.60 an ounce by 7:19 a.m. on the Comex in New York, after falling as much as 0.6 percent to the lowest since March 20. Prices are down 2.3 percent in March and little changed this year. Gold for immediate delivery fell 0.1 percent to $1,184.41 in London, according to Bloomberg generic pricing.

Traders who study chart patterns may view $1,180 as an important level and a close below that might spur more declines, Butler said. He said the price is near a Fibonacci level, a system that uses figures found in nature to predict future moves, and a previous so-called triple bottom, a pattern consisting of three troughs.

The dollar also strengthened against the euro amid concerns Greece will fail to reach agreement with its European creditors to unlock bailout funds. The risk of a default by Greece helped boost demand for gold as a haven earlier this year.

Silver futures dropped as much as 1.4 percent to $16.435 an ounce in New York, the lowest since March 20. Prices are still set to climb 6.5 percent this quarter.

Platinum rose 0.8 percent to $1,126.40 an ounce, heading for a third quarterly decline. Palladium increased 0.9 percent to $735.50 an ounce, paring a quarterly loss to 7.9 percent.