On Tuesday, gold (NYSEARCA:GLD) futures for February delivery, the most active contract, increased $6.20 to settle at $1,693.20 per ounce, while silver (NYSEARCA:SLV) futures for March rose 25 cents to close at $32.18.

Both precious metals showed strength as the Bank of Japan fires more shots in the global currency war. The central bank doubled its inflation target to 2 percent and made a commitment to start open-ended monetary easing next year. The BOJ has been under pressure from new Prime Minister Shinzo Abe for stronger monetary actions. Seven of the nine board members voted for the new inflation target.

Starting in 2014, the BOJ will purchase 13 trillion yen in assets each month, including 2 trillion yen in long-term government bonds and 10 trillion yen in treasury discount bills.

In a statement, the bank explains, “The BOJ will pursue powerful monetary easing by maintaining virtually zero interest rates and purchases of financial assets as long as it deems appropriate.” The decision echoes the moves made by other central banks such as the Federal Reserve and European Central Bank.

In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 0.55 percent, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.35 percent. Gold miners such as Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) surged 2.45 percent and 5.05 percent, respectively. Silver miners (NYSEARCA:SIL) such as Endeavour Silver (NYSE:EXK) and Hecla Mining (NYSE:HL) both gained more than 1 percent.

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