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By Bloomberg

Gold fell for the fourth time in five days as the dollar strengthened on speculation an improving U.S. economy will prompt the Federal Reserve to raise interest rates. Silver and platinum retreated.

The Bloomberg Dollar Spot Index climbed to a three-week high before data Tuesday forecast to show U.S. retail sales rose by the most in a year, bolstering the case for higher borrowing costs. Rising rates curb gold’s appeal because the metal generally only offers returns through price gains.

“Gold is reacting to the stronger dollar,” Bernard Sin, the head of currency and metal trading at MKS (Switzerland) SA, a Geneva-based refiner, said by phone. “There’s currently strong demand for dollars and the debate about a U.S. interest- rate hike is carrying on.”

Bullion for June delivery fell 0.5 percent to $1,198.50 an ounce by 7:43 a.m. on the Comex in New York. Gold for immediate delivery declined 0.6 percent to $1,199.94 in London, according to Bloomberg generic pricing.

Fed policy makers were split at last month’s meeting on when to begin raising rates. Fed Bank of Richmond President Jeffrey Lacker has said he continues to favor a first rate increase in June, while Minneapolis Fed President Narayana Kocherlakota reiterated that it would be a “mistake” to raise them this year.

Holdings in gold-backed exchange-traded products fell 2 metric tons to 1,618.1 tons, according to data compiled by Bloomberg as of Friday. Assets rose 3.9 tons on April 9, the biggest increase since February.

Silver futures for May delivery fell 0.7 percent to $16.275 an ounce in New York. Platinum for July delivery lost 1.1 percent to $1,157.70 an ounce, while palladium for June added 0.5 percent to $779.75 an ounce.