* Gold surges by nearly 2.5 pct after Fed's Evan comments
* Physical demand picks up
(Recasts, updates prices, market activity, adds NEW YORK to
dateline, second byline)
By Frank Tang and Amanda Cooper
NEW YORK/LONDON, Aug 30 (Reuters) - Gold rallied 2 percent
Tuesday boosted by a disappointing U.S. consumer confidence
report and by a top Federal Reserve official saying that strong
and prolonged central bank accommodation is warranted given
poor U.S. economic growth.
Gold accelerated gains early in the session after Chicago
Fed President Charles Evans told CNBC television he backs "some
of the most aggressive policy actions" now being considered by
the Fed, adding the labor market, with its 9.1 percent jobless
rate, looks to be in a recession. [ID:nN1E77T08F]
Other perceived safe havens, such as Treasuries, also rose
and equity markets fell after data showed U.S. consumer
confidence crumbled in August to its lowest in more than two
"Certainly, there is very little confidence among the major
macro-type investors about which way the global economy is
going to go over the next three to six months," said Credit
Suisse Tom Kendall.
"There is very little conviction one way or the other and
that is very supportive of gold," he said.
Bullion now gained as much as 8 percent in the last three
sessions, largely supported after Fed Chairman Ben Bernanke
raised hopes for a new market stimulus program on Friday.
Spot gold was up 2 percent at $1,822.50 an ounce by
1:22 p.m. EDT (1722 GMT). Gold fell by more than 1 percent last
week, when investors stripped more than $200 off the price
after it hit a record $1,911.76 on Aug 23.
U.S. gold futures for December delivery was up
$34.20 at $1,825.70 an ounce.
Silver was up 1.1 percent at $41.24 an ounce.
Prices at 1:22 p.m. EDT (1721 GMT)
LAST NET PCT YTD
CHG CHG CHG
US gold 1825.70 34.20 1.9% 28.4%
US silver 41.240 0.694 1.7% 33.3%
US platinum 1852.20 27.20 1.5% 4.2%
US palladium 778.50 24.55 3.3% -3.1%
Gold 1822.50 35.25 2.0% 28.4%
Silver 41.24 0.46 1.1% 33.6%
Platinum 1845.24 27.49 1.5% 4.4%
Palladium 776.00 25.82 3.4% -2.9%
Gold Fix 1825.00 34.00 1.9% 29.4%
Silver Fix 40.90 -16.00 -0.4% 33.5%
Platinum Fix 1840.00 10.00 0.5% 6.3%
Palladium Fix 767.00 10.00 1.3% -3.0%
(Additional reporting by Lewa Pardomuan in Singapore; Editing
by Bob Burgdorfer)
© 2017 Thomson/Reuters. All rights reserved.