Gold trades 1.1% lower once again approaching key support around USD 4,100, as sellers focus on continued dollar and yield strength as well as renewed upward pressure on fuel prices. Recent selling by leveraged hedge funds continues to be partly offset by steady ETF demand, with investors seemingly seeking protection against geopolitical risks and, increasingly, concerns about the fiscal implications of persistently high borrowing costs. The divergence is striking: US 10-year real yields have surged to an 18-year high near 3% - traditionally a major headwind for non-yielding gold - yet total ETF holdings monitored by Bloomberg have risen almost continuously since August to a four-year high of 3,145 tonnes. It suggests that, for some investors, rising yields are increasingly being viewed not only through the lens of gold’s opportunity cost, but also as a potential threat to fiscal stability and therefore a reason to maintain or increase gold exposure.