Precious metals dropped to fresh multi-week lows on Tuesday helped by a view that rising overall investor confidence will cut safe-haven demand for the commodities while chartists turned history pages and 'decided to wait' for an additional discount of $30 for an ounce of gold, which is already $100 down from its peak seen less than two months ago.

Bears sighed at the non pull-off from 150-day SMA for gold and 100-day SMA for silver breached Monday at which levels RSI was showing both the metals in the over-sold zone.

RSI still strongly signals a rebound, but analysts point out that a fall in precious metals during the early months of the year has been observed since 1980, and therefore the prices could fall more before a turnaround.

At their weakest points of the day, gold was down by more than 6 percent as compared with its peak while the white metal was weaker by more than 14 percent.

The Gold-silver-ratio, the ounces of silver needed to buy one ounce of gold, has been steadily rising in the recent weeks, suggesting silver has relatively less room to correct to balance the price action by the metals. The ratio that was at 45.96 as on December 31 rose to 48.82 by Friday, which is now at 49.77.

By mapping the waves downstream, we get $1,300 for gold and $25 for silver for the near-future. On the way up, the yellow metal has targets at $1,350 and $1380 while its white colleague could aims at $28 and $29.5.

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