The US tariff policy is unknown, and gold prices have fallen sharply

Gold and silver prices fell sharply in early US trading on Monday (August 11), due to the great uncertainty of the US import tariff policy on gold. December gold futures (currently gold futures are more than $50 above the spot gold price) fell $80.50 to $3410.80. September silver futures fell $0.682 to $37.865.

Gold prices took a beating after a strong rally in early trading on Friday, as traders await further clarification from the Trump administration on its import tariff policy. The precious metals market is likely to remain tight until long-term clarity on the policy, which the administration exempted the precious metal from tariffs in April. "As the industry awaits this possible policy clarity, we see the gold market moving in an orderly fashion," wrote Joseph Cavatoni, senior North American market strategist at the World Gold Council.

In other news, the Shanghai Composite rose 0.34% on Monday and the Shenzhen Composite rose 1.46%, extending last week's gains as investors awaited news ahead of a Tuesday deadline on whether the U.S.-China tariff truce would be extended. There are reports that China is seeking U.S. concessions on artificial intelligence chip export controls as part of a trade deal, a move likely ahead of the summit between Presidents Donald Trump and Xi Jinping.

According to Nikkei Asia, citing an interview with U.S. Treasury Secretary Scott Bessent, the United States is expected to largely complete trade negotiations with countries that have not yet reached a trade agreement by the end of October.

Mr. Bescent made the comments in an interview with the Nikkei Asian Review on Thursday, Bloomberg reported, just after President Trump's new tariffs took effect. Some major trading partners, including Canada, Mexico and Switzerland, are still seeking better terms with the United States.

In key peripheral markets today, the dollar index edged higher. Nymex crude oil futures were essentially flat, trading around $64.00 a barrel. The yield on the benchmark 10-year Treasury note is now 4.26 per cent.

No major U.S. economic data was released on Monday.

(Daily chart of COMEX gold futures, source: Internet)

From a technical standpoint, the December gold futures bulls overall still have a solid short-term technical advantage, but it weakened somewhat today. The next upside target for the bulls is to close above the strong resistance level of $3500.00. The next short-term downside target for the bears is to push the futures price down below the strong technical support level of the July low of $3,366.20. The first resistance level is to see $3,450.00, followed by the overnight high of $3,466.30. The first support level is to see $3,400.00, followed by $3,350.00.

The September silver futures bulls in general have a solid short-term technical advantage. The next upside target for the silver bulls is to close above the strong technical resistance level of the July high of $39.91. The next downside target for the bears is to close below the strong support level of the July low of $36.28. The first resistance level is to see the overnight high of $38.56, followed by last week's high of $38.875. The next support level is to see the overnight low of $37.65, followed by $37.50.

At 22:17 Beijing time, spot gold was at $3,356.30 an ounce, down 1.2%. COMEX gold futures were at $3,456.6 an ounce, down 2.2%. Spot silver was at $37.808 an ounce, down 1.28%. COMEX gold futures were at $37.925 an ounce, down 1.60%.