Gold rose on Tuesday as the Bank of Japan's pledge to launch an economic stimulus effort and a five-year high in U.S. equities prompted nervous investors to buy gold.
The metal rose for a second day after the Bank of Japan said it would switch to an open-ended commitment to buying assets next year and double its inflation target to 2 percent in its most determined effort to boost its stagnant economy.
Bullion has still failed to close above strong technical resistance near its 50-day moving average at $1,690 an ounce as well as the $1,700 mark, even though it had been testing them in the last several sessions.
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"We've seen quite a bit of selling pressure that's coming at these levels. As S&P and stocks get into this overbought territory, the uncertainty is helping drive money back into precious metals as a safe haven," said Tom Power, senior commodities broker at brokerage RJ O'Brien.
U.S. stocks mostly edged up on Tuesday after ending last week at five-year highs, but gains were limited with investors showing caution as the earnings season picks up speed. On charts, the S&P 500 index's 14-day relative strength index (RSI) rose to near an overbought 70, hovering near its highest since September 2012.
Spot gold was up 0.1 percent at $1,691.24 an ounce. Spot gold has not broken above $1,700 since Dec. 18.
U.S. gold futures for February delivery settled up $6.20 at $1,693.20 an ounce.