Gold Gains in London After Evans Comments on Steps for Economy

Gold rose in London after Federal Reserve Bank of Chicago President Charles Evans said the U.S. central bank should keep steps to boost economic growth, boosting demand for the metal as an alternative to currencies.

Too much austerity too soon could be damaging to near- and medium-term growth, Evans said in Hong Kong today. Bullion rose 70 percent as the Fed bought $2.3 trillion of debt in two rounds of easing from December 2008 through June 2011. The dollar index which compares the U.S. currency against six counterparts fell for a third day. Gold usually moves inversely to the dollar.