* Weaker yuan seen pushing onshore funds to dollar-linked assets
* Coke also pulls back from strongest level since 2013
* Rebar steady after scaling highest since April (Updates prices)
By Manolo Serapio Jr
MANILA, Nov 2 (Reuters) - Iron ore futures in China pulled back on Wednesday as investors locked in recent gains after the steelmaking raw material earlier rose to the highest in more than two years amid stronger steel and coal prices and a mending Chinese economy.
Activity in China's manufacturing sector expanded at the fastest pace in over two years in October thanks to a construction boom, according to data released on Tuesday. ore for January delivery on the Dalian Commodity Exchange DCIOcv1 climbed as far as 509 yuan ($75) a tonne, its loftiest since July 2014.
The contract closed down 1.8 percent at 491.50 yuan, in line with a retreat in other commodities on Chinese exchanges such as aluminium SAFcv1 and rubber SNRcv1 after recent gains.
Dalian iron ore gained more than 20 percent in October, driving a 16 percent increase in spot iron ore prices.
Iron ore for delivery to China's Tianjin port .IO62-CNI=SI rose 0.9 percent to $64.40 a tonne on Tuesday, the highest since April 29, according to The Steel Index.
Traders have mostly attributed iron ore's climb to the strength in coal prices as mills sought higher grade iron ore to be able to use less coal.
But Goldman Sachs (NYSE:GS) said it may have more to do with the recent weakness in the yuan.
"A rising dollar/yuan led onshore investors to seek dollar-linked assets such as commodities and iron ore may be the first in line to benefit from such investment flows," Goldman analysts said in a report.
There may be further room for the yuan to depreciate given the high likelihood of the U.S. Federal Reserve hiking interest rates in December, they said.
"With ample onshore money supply chasing a limited menu of accessible dollar-linked assets, continued yuan depreciation means that iron ore prices may stay above what the fundamental demand and supply suggest in coming months," Goldman analysts said.
Steel and coal futures also came off session highs on Wednesday, but managed to cling to most of the day's gains.
The most-active rebar, a construction steel product, on the Shanghai Futures Exchange SRBcv1 closed up 0.1 percent at 2,610 yuan a tonne after touching 2,665 yuan earlier, the highest since April 25.
January Dalian coking coal DJMcv1 ended 1.1 percent firmer at 1,304.50 yuan a tonne, after touching a contract high of 1,348.50 yuan. Dalian coke DCJcv1 dropped 0.4 percent to close at 1,778 yuan, after earlier hitting 1,843 yuan, its strongest since March 2013. ($1 = 6.7643 Chinese yuan)