* 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