Gold prices rallied Tuesday morning after Chicago Federal Reserve President Charles Evans said the Fed may need to take additional policy steps to help a faltering economy and employment market.

SPDR Gold Shares (NYSEArca: GLD) was up more than 2% in premarket trading Tuesday after Evans told CNBC the Fed needs to be more aggressive in its easing policies.

He said the Fed’s stimulus to aid the economy hasn’t been responsible for higher commodity prices.

“Strong accommodation needs to be in place for a substantial period of time. If we could sort of make everybody understand that this is going to be in place for a longer period of time, we could knock out some of that restraint that comes about when people talk about premature tightening,” Evans said, according to a report.

“We would have been so much worse if we had not had the accommodation that has been in place, the additional accommodation that came with QE2,” he said.

The minutes from the latest Fed meeting are expected to cross Tuesday afternoon.

Full disclosure: Tom Lydon’s clients own GLD.

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