Supposedly God’s law is not gracious because it bring wrath.

Thus, for example, Romans 7:

4 Likewise, my brothers, you also have died to the law through the body of Christ, so that you may belong to another, to him who has been raised from the dead, in order that we may bear fruit for God. 5 For while we were living in the flesh, our sinful passions, aroused by the law, were at work in our members to bear fruit for death. 6 But now we are released from the law, having died to that which held us captive, so that we serve in the new way of the Spirit and not in the old way of the written code.

7 What then shall we say? That the law is sin? By no means! Yet if it had not been for the law, I would not have known sin. For I would not have known what it is to covet if the law had not said, “You shall not covet.” 8 But sin, seizing an opportunity through the commandment, produced in me all kinds of covetousness. For apart from the law, sin lies dead. 9 I was once alive apart from the law, but when the commandment came, sin came alive and I died. 10 The very commandment that promised life proved to be death to me. 11 For sin, seizing an opportunity through the commandment, deceived me and through it killed me. 12 So the law is holy, and the commandment is holy and righteous and good.

13 Did that which is good, then, bring death to me? By no means! It was sin, producing death in me through what is good, in order that sin might be shown to be sin, and through the commandment might become sinful beyond measure. 14 For we know that the law is spiritual, but I am of the flesh, sold under sin. 15 For I do not understand my own actions. For I do not do what I want, but I do the very thing I hate. 16 Now if I do what I do not want, I agree with the law, that it is good. 17 So now it is no longer I who do it, but sin that dwells within me. 18 For I know that nothing good dwells in me, that is, in my flesh. For I have the desire to do what is right, but not the ability to carry it out.

Or consider a much shorter statement from Romans 5:

20 Now the law came in to increase the trespass

Romans 4:

15 For the law brings wrath, but where there is no law there is no transgression.

Or this from Romans 3.20:

through the law comes knowledge of sin.

So can the Law be gracious if this is true?

Yes. From Romans 2, in the context of pointing out that being entrusted with the Law as a circumcised Jew does not mean that one is right with God, Paul writes:

3 Do you suppose, O man—you who judge those who practice such things and yet do them yourself—that you will escape the judgment of God? 4 Or do you presume on the riches of his kindness and forbearance and patience, not knowing that God’s kindness is meant to lead you to repentance? 5 But because of your hard and impenitent heart you are storing up wrath for yourself on the day of wrath when God’s righteous judgment will be revealed.

Notice that this dynamic unfolding from God’s “kindness” is exactly what Paul says that the Law brings. The law was an aspect of God’s kindness and undeserved graciousness to Israel.