CANADA FX DEBT-C$ rallies as gold hits record high

* Rises more than 1 U.S. cent above overnight low

* Ends session at C$1.0682 per U.S. dollar

* Bond prices flat, await Fed statement
(Recasts)

By Frank Pingue

TORONTO, Nov 3 (Reuters) - Canada's dollar clawed back from
early weakness to rise against the U.S. currency for a second
straight session on Tuesday as oil prices jumped and gold
prices rose to a record high.

The higher closes this week follow a slump that pushed the
currency to its lowest level in a month early on Monday before
it began its rebound.

"It really struggled against a host of currencies so it was
just time for the Canadian currency to have a little bit of a
bounce," said Tyson Wright, senior foreign exchange trader at
Custom House, a currency services firm in British Columbia.

Driving the rally on Tuesday was a rise in gold prices to a
record high above $1,080 an ounce as the International Monetary
Fund's sale of gold to India's central bank boosted sentiment
toward the metal. [GOL/]

Oil prices also chipped in, rising nearly 2 percent after
U.S. data signaled the potential for more fuel demand in the
United States, the world's biggest energy consumer. [O/R]

The Canadian dollar rose as high as C$1.0656 to the U.S.
dollar, or 93.84 U.S. cents, which was comfortably off its
overnight low of C$1.0855 to the U.S. dollar, or 92.12 U.S.
cents.

It tapered off slightly late in the day and ended the
session at C$1.0682 to the U.S. dollar, or 93.62 U.S. cents, up
from C$1.0778 to the U.S. dollar, or 92.78 U.S. cents, at
Monday's close.

One of the next key events likely to offer direction for
the Canadian dollar is Canadian employment data on Tuesday,
which is expected to show the economy created 10,000 jobs in
October.

Canadian employers hired six times more workers than
expected in September, knocking down the unemployment rate for
the first time since July 2008. [ID:nN09253705]

BOND PRICES FLAT

Canadian bond prices ended mostly unchanged as dealers
avoided major commitments ahead of Wednesday's statement from
the U.S. Federal Reserve on monetary policy.

Market players will pore over the statement to see if the
Fed alters its wording and lays the foundation for tighter
monetary policy at some point in the future.

The two-year bond CA2YT=RR rose 2 Canadian cents to
C$99.69 to yield 1.403 percent, while the 10-year bond
CA10YT=RR gained 8 Canadian cents to C$102.58 to yield 3.431
percent.
(Editing by Peter Galloway)