* Gold up for third straight session
* SPDR Gold Trust holdings slide back to Jan 2020 lows
* U.S. 10-year Treasury slip from 16-year peak
Aug 23 (Reuters) - Gold extended gains above the $1,900 level on Wednesday, drawing support from a retreat in U.S. bond yields as investors positioned for guidance from monetary policymakers at the Jackson Hole symposium.
Spot gold firmed 0.3% to $1,902.90 per ounce by 0943 GMT, drifting higher for the third straight session. U.S. gold futures rose 0.3% to $1,932.20.
"It's all about Jackson Hole at this point. I think it's just a case of traders want to hear what the Fed has to say and don't want to be caught napping," said Craig Erlam, senior markets analyst at OANDA.
"The trade action from the last couple of days highlights trepidation in the market to overly commit one way or another ahead of the event."
Offering some respite to bullion, which touched a five-month low last week, benchmark 10-year Treasury yields came off near 16-year peaks hit on Tuesday.
The euro fell after data showed the downturn in euro zone business activity deepened far more than thought this month, sending euro-priced gold to a two-week high.
Traders also awaited S&P Global's U.S. purchasing managers' index (PMI) data due at 1345 GMT.
Federal Reserve officials at Jackson Hole were likely to be "very hesitant to deviate too significantly from the messaging. We're not going to see any reference whatsoever to rate cuts", Erlam said.
The Fed must be open to the possibility that the economy would begin to reaccelerate rather than slow, with potential implications for their inflation fight, Richmond Fed President Thomas Barkin said on Tuesday.
SPDR Gold Trust, the world's largest gold-backed ETF, said its holdings slid back to their lowest levels since mid-January 2020.
In other metals, spot silver gained 1.5% to $23.74 per ounce and platinum added 0.8% to $926.26. Palladium was up 1.7% to $1,281.50.
(Reporting by Deep Vakil in Bengaluru; editing by Robert Birsel)
