Gold is heading for its best monthly performance in more than two years

Gold prices rose on Wednesday, on their way to recording the largest monthly increase in more than two years, while investors await the speech of Federal Reserve Chairman Jerome Powell, seeking any indications on the path of the US central bank’s monetary policy.

Spot gold rose 0.6 percent to $1,760.56 an ounce at 0921 GMT. US gold futures rose 0.6 percent to $1,759.40.

Gold is expected to achieve a monthly rise of 7.8 percent, which would be its best monthly performance since July 2020 and follows a seven-month losing streak.

The dollar index fell 0.4 percent, making bullion less expensive for holders of other currencies.

All eyes are on Powell’s speech at the Brookings Institution, scheduled for 1830 GMT, for any fresh clues about the Fed’s plans to raise interest rates next year. Investors are also awaiting the US employment report, which will be released at 1315 GMT.

Edward Meer, an analyst at ED&F, said Powell’s speech was the market’s main focus.

Among other precious metals, spot silver rose 0.9 percent to $21.47, heading for the best monthly performance since December 2020, and platinum jumped 1.4 percent to $1,016.00, also on its way to achieving the largest monthly gain since February 2021, and palladium rose. 2.7 percent to $1,882.63, achieving a gain of 2.5 percent during the current month.