Gold rally loses steam as yields edge up, stocks rebound

Oct 10 - Gold prices edged down on Tuesday after clocking a sharp rise in the last session as risk sentiment improved and bond yields rebounded, while investors awaited the U.S. inflation data due later this week.

"Markets remain responsive to further signs of escalation and further events that unfold over the coming days. But for now, it seems that markets have settled down," said Craig Erlam, senior markets analyst at OANDA. European stocks rebounded sharply on Tuesday as dovish comments from Fed policymakers and easing oil prices helped calm investor nerves.

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