* TSX up 0.7%

* Materials lead sectoral gains

* Orla mining provides Q2 operational results; shares gain

July 10 (Reuters) - Canada's main stock index rose on Wednesday, amid broad sectoral gains, while markets awaited fresh economic data from the U.S. for further clues on the Federal Reserve's monetary policy path.

At 10:26 a.m. ET (1426 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 163.79 points, or 0.74%, at 22,206.29, on track for its best day in a week.

The materials sector led the sectoral gains and rose 1.7%, hitting its highest level in over a month. The sector tracked spot gold prices which rose on a stronger case for U.S. interest rate cuts sooner.

"The material sector is responding favorably to Powell's comments. If interest rates were to decrease, that would be a positive for gold as investors would be more likely to look to gold as an alternative to fixed income," said Graham Priest, investment advisor at BlueShore Financial.

The communication services sector was the only outlier with a 0.1% decline.

Investors digested Monday's Fed Chair Jerome Powell's congressional testimony, where he acknowledged the U.S. economy was no longer overheated, fuelling September rate cut hopes.

The policymaker's second day of testimony was currently underway.

On Wall Street, the benchmark S&P 500 and the Nasdaq touched fresh record highs, driven by continued strength in megacaps.

To evaluate the future trajectory of interest rates, markets will closely watch the U.S. consumer price index and producer price index data, due on Thursday and Friday, respectively.

Separately, hopes of another rate cut from the Bank of Canada at its July 24 meeting are high, after the last jobs dataset showed Canadian unemployment at a 29-month high.

"Quick rise in unemployment could lead to a negative impact on the economy and a significant drop off in consumer spending," Graham added.

In individual stocks, Orla Mining gained 2.5% after the miner provided second-quarter operational results. (Reporting by Nikhil Sharma in Bengaluru; Editing by Tasim Zahid)