Gold steadies after hints on possible tariff relief

• Gold tries to turn positive on the day after earlier losses in the Asian trading session. 
•  US Commerce Secretary Howard Lutnick hinted at some relief on the recent tariffs. 
• US yields recovered a touch, though they still have a long road to recovery. 

Gold's price (XAU/USD) recovers its earlier losses in the Asian trading session and trades around $2,920 at the time of writing on Wednesday. With tariffs still in place and several more tariffs to come for Europe and other countries, Gold will remain the place to be in terms of safe haven.

However, some surprising comments from United States (US) Commerce Secretary Howard Lutnick overnight hinted that tariffs could already be eased or fully unwinded for Mexico and Canada. This pressures the upside for Gold for now. 

Daily digest market movers: Already off again?

• Bullion was near $2,912 an ounce -- about $40 shy of the all-time peak reached last week. Trump doubled tariffs on China and imposed 25% levies against Canada and Mexico. However, US Commerce Secretary Howard Lutnick hinted at some relief for the US's two neighbors, telling Fox Business there could be a path to reduce some of the duties, Bloomberg reports.
• Zimbabwe's Gold output jumped to 2,568 kg last month from 1,854 kg in the year-earlier period, Fidelity Gold Refinery says in an emailed statement, Reuters reports.
• Gold's extreme price dislocations are fading as tightness in the physical market eases, indicating a rush to ship bullion to America may have run its course, Bloomberg reports. 

Technical Analysis: Riding into the ground

Bullion might face some pressure on Wednesday after its two-day strong recovery this week. The comments from Secretary Lutnick are putting longer-term safe haven flow for Gold a bit on loose screws. Traders will want to trim their positions in the idea that the US could, at any moment, unwind those tariffs, which would spark profit-taking in the precious metal. 

While Gold trades near $2,920 at the time of writing, the daily Pivot Point at $2,909 and the daily R1 resistance at $2,936 are the levels to watch for this Wednesday, with the daily Pivot Point already back in the hands of the bulls. In case Gold sees more inflows, the daily R2 resistance at $2,955 will possibly be the final cap ahead of the all-time high of $2,956 reached on February 24. 

On the downside, the S1 support at $2,890 converges with Monday's high. That will be the vital support for this Wednesday. If Bullion bulls want to avoid another leg lower, that level must hold. Further down, the daily S2 support at $2,863 should be able to catch any additional downside pressure.

XAU/USD: Daily Chart