Gold stabilised on Thursday after two days of losses, helped by a slight pullback in the dollar, but gains were kept in check by expectations that the U.S. Federal Reserve would soon start tapering its monetary support. Spot gold rose 0.2% to $1,729.26 per ounce by 0920 GMT. U.S. gold futures were up 0.5% at $1,730.70. Gold is being offered some reprieve from the dollar taking a breather, said Han Tan, chief market analyst at Exinity. But heightened prospects for the Fed’s tapering, now widely expected to commence in November, and chances of Treasury yields continuing to gain are expected to heap more downward pressure on the zero-yielding precious metal, Tan added. The dollar index paused on Thursday, but expectations that the Fed will start winding down its stimulus this year kept the U.S. currency near its highest in a year, diminishing gold’s appeal for holders’ of other currencies and putting it on course for a 2.2% quarterly dip. Benchmark U.S. 10-year Treasury yields too held above 1.5%, a level not seen since late-June. Reduced central bank stimulus and interest rate increases tend to push government bond yields higher, raising the opportunity cost of holding non-yielding gold. While factors including the U.S. debt ceiling impasse, rising global inflation and the Evergrande crisis should normally support gold, bullion remains under pressure from a strong dollar -- an alternate “safe-haven” -- and rising yields, Ricardo Evangelista, senior analyst at ActivTrades said in a note. Silver rose 0.5% to $21.62 per ounce. Platinum gained 0.4% to $954.31, while palladium climbed 1.8% to $1,891.02. (Reporting by Arundhati Sarkar in Bengaluru. Editing by Jane Merriman)