On Wednesday during the Asian trading session, gold prices continued to fluctuate. The US dollar has regained momentum, approaching the nearly three week high hit on Tuesday, coupled with the generally optimistic sentiment in global stock markets, putting pressure on safe haven precious metals.

However, the uncertainty surrounding the "mutual aid tariffs" planned by US President Trump next week has helped gold prices hold the key psychological barrier of $3000. In addition, market expectations that the Federal Reserve will restart its interest rate cut cycle due to economic recession concerns have suppressed traders' aggressive bearish bets on non yield gold.

The data released by the United States on Tuesday showed that the Consumer Confidence Index of the World Association of Large Enterprises has declined for the fourth consecutive month, falling to 92.9 in March, the lowest level in four years. The expected index has dropped to 65.2, hitting a 12 year low and far below the usual threshold of 80, which indicates a recession.

This weak data caused the US dollar to fall from its three week high. Last week, the Federal Reserve lowered its growth forecast, partly due to uncertainty surrounding Trump's trade policies. The more targeted tariffs to be implemented on April 2nd have eased inflation concerns, paving the way for the Federal Reserve to continue cutting interest rates and benefiting gold prices.

Federal Reserve Chairman Jerome Powell said, "The tariff hike may delay the decline in inflation, but its price effect is expected to be temporary and will quickly transmit and dissipate

The Federal Reserve maintained interest rates at 4.25% -4.50% in March and hinted at two rate cuts of 25 basis points each within the year. The market expects interest rate cuts in June, July, and October, exceeding official guidelines. This contrasts with the hawkish rhetoric of Federal Reserve Governor Kugler, who advocates keeping interest rates unchanged for a period of time.

Trump has also imposed secondary tariffs on Venezuela and threatened to impose a 25% tariff on countries that purchase its oil and gas. He also plans to impose retaliatory tariffs on 15 major trading partners on April 2, intensifying market tensions.

According to market research, "Low consumer confidence and expectations of interest rate cuts support gold prices, but optimistic sentiment in the equity market may limit gains

Traders are eagerly awaiting the release of US durable goods order data and FOMC member speeches on Wednesday, in search of directions for the US dollar and gold prices. More importantly, the upcoming PCE price index may reveal the path of the Federal Reserve's interest rate cuts and drive the trend of gold prices.

On a technical level, gold prices have shown resilience around $3000, with positive daily chart oscillation indicators. If it breaks through the overnight high of $3036, it may retest last week's historical high of $3057-3058. On the contrary, if it falls below $3000, it may trigger a technical sell-off, probing the support level of $2982-2978, or even $2956-2954.