Gold climbs above $1,900 handle as US dollar steps back

* Dollar down 0.3% at near one-week low

* U.S. 10-year bond yields highest since late 2007

* SPDR Gold Trust holdings resumed outflows on Monday

Aug 22 (Reuters) - Gold prices staged a comeback above the key $1,900 level on Tuesday, as the U.S. dollar backtracked in the run-up to the central bankers' meeting later this week that could offer clues on the path of future interest rate hikes.

Spot gold rose 0.3% to $1,898.79 per ounce by 0829 GMT, having risen to as high as $1,902.09 earlier. U.S. gold futures gained 0.3% to $1,927.70.

Gold prices have extended gains to a second session after prices on Monday settled 0.3% higher following a week of back-to-back losses.

"Potential buyers have been waiting to see how far gold could fall, and this could be the beginnings of their re-entering the market in force," said Clifford Bennett, chief economist at ACY Securities.

"And at the same time, just the initial hints that perhaps the U.S. dollar rally may be done for the moment."

The dollar index eased back from a recent 10-week peak compared with major peers on Tuesday, even as 10-year Treasury yields hit highs last seen in November 2007 on resilient U.S. economy boosting higher-for-longer views on interest rates.

Higher rates increase bond yields, making non-yielding bullion less attractive.

For an outlook on interest rates, comments from Fed Chair Jerome Powell on Friday will be monitored at a meeting of central bankers at Jackson Hole, Wyoming.

Receding fears of a U.S. slowdown and surging bond yields have gradually eroded the appeal of exchange-traded funds (ETF) backed by traditional safe-haven gold this year.

As prices attempt to stabilize, a greater conviction for gold bulls may have to come from a reclaim of its 200-day moving average, Yeap Jun Rong, a market strategist at IG wrote in a note.

In other metals, spot silver fell 0.1% to $23.33 per ounce and platinum climbed 0.9% to $917.13. Palladium was up 0.4% at $1,249.74. (Reporting by Swati Verma in Bengaluru; Editing by Sherry Jacob-Phillips, Sonia Cheema and Janane Venkatraman)