Gold remains slightly offered just above $3,000

Gold is trading in a narrow range on Wednesday but continues to hold firm just above the $3,000 mark. The precious metal is drawing support from upbeat sentiment in the broader commodities space, buoyed by Copper’s surge to a fresh all-time high earlier in the day.

XAU/USD Technical Overview

The XAU/USD pair's daily chart shows it trades around its daily opening, just below $3,020. The upward momentum faded, but the risk remains skewed to the upside, given that technical indicators hold well above their midlines, with modest upward slopes. At the same time, the pair keeps developing above all its moving averages, with a bullish 20 Simple Moving Average (SMA) providing support at around $2,960. 

The 4-hour chart shows XAU/USD remains stuck around a mildly bearish 20 SMA while the 100 and 200 SMAs maintain their bullish slopes far below the current level. Technical indicators, in the meantime, head modestly lower just below their midlines, not enough to confirm a steeper decline.

Support levels: 2,999.30 2,984.70  2,970.20

Resistance levels: 3,030.50 3,047.40 3,060.00

Fundamental Overview

Gold price is stable on Wednesday, hovering in a tight range around its daily opening. The bright metal failed to attract fresh buyers despite fresh US Dollar (USD) strength and a generally sour mood. Wall Street turned red after the opening, reflecting the risk-off sentiment. 

Concerns gyrate around United States (US) President Donald Trump's tariff announcements, with the latest on the matter indicating he is preparing auto tariffs and will unveil his plan as soon as today. His massive levies on US imports from around the world have triggered concerns among authorities and representatives from major economies, as such taxes could affect economic growth and inflation levels beyond the US. According to the latest data available, reciprocal tariffs will come into effect on April 2.

Meanwhile, US data was encouraging. The country released February Durable Goods Orders, which rose by 0.9%, beating the -1%. The latest update on the Q4 Gross Domestic Product (GDP) will be out on Thursday, alongside Initial Jobless Claims for the previous week. 

Meanwhile, Federal Reserve (Fed) member Neel Kashkari reiterated that there is still job to be done regarding inflation, while adding he is still uncertain about the effects of tariffs. He added that he takes very seriously the hit to confidence, and that the Fed should sit were it is, referring to maintain a wait-and-see stance.