Gold fell as much as 4% to $4,111 an ounce on Monday, its lowest since August 5, as rising U.S. Treasury yields and expectations of another Federal Reserve rate hike reduced demand for the non-yielding metal. The benchmark 10-year Treasury yield reached its highest level since June 2007 before retreating, while two-year yields climbed sharply as markets priced in roughly a 70% chance of a second consecutive Fed rate increase in October. Positioning also weakened, with money managers’ net long gold holdings reaching their lowest level since late July and gold-backed ETFs recording 1.6 metric tons of outflows. Softer Chinese demand ahead of the October 1 to 7 holiday added to the pressure, although central-bank purchases and stronger Indian demand ahead of Diwali and the wedding season could offer support. Historically high prices and a relatively weak Indian monsoon may limit jewelry demand among price-sensitive buyers, including farmers.