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Gold traded near a seven-month high as investors assessed the outlook for US monetary policy amid swings in financial markets and concern that global growth is slowing.

Gold has outperformed all members of the Bloomberg Commodity Index in 2016 as global growth concerns fueled market turbulence and boosted demand for haven assets. Bullion has also risen as speculation the US central bank will hold off on raising interest rates weakened the dollar. Federal Reserve Chair Janet Yellen appears before the US House Financial Services Committee on Wednesday and will address the Senate Banking Committee the next day.

Volatility on "global markets saw gold remain in sight of the US$1,200 an ounce level," Australia & New Zealand Banking Group Ltd wrote in a note on Wednesday. "Markets will be driven by two things today: the performance of equities and the semi- annual testimony by Fed Chair Yellen."

Gold rose for an eighth session out of nine on Wednesday, climbing towards a 7-1/2-month high as investors sought the safe-haven asset amid tumbling stock markets and concerns about the global economy.

Global equity markets have been hit by worries over the health of the euro zone banking sector, with a very loose monetary policy seen crimping bank profits and consequently their ability to repay debt.

That has triggered a rally in bullion, along with other safe-haven assets such as government bonds and the Japanese yen.

Gold will push higher on continued jitters in the global equity markets, dollar weakness, bullish technicals and a pick up in bullion investment buying, said INTL FCStone analyst Edward Meir.

Federal Reserve Chair Janet Yellen's address to the U.S. Congress later on Wednesday was also expected to support prices.

"We suspect her remarks will come across as unusually dovish, allowing the dollar to resume its descent and giving commodity markets a bit of a lift late in the day on Wednesday," Meir said.

Reference: Business Times, Reuters, Bloomberg