It's not that one usage is right or wrong - it's that they have different meanings.
"X is standing" (present progressive) is often used to indicate the state is temporary, happening particularly in the present moment.
"X stands" (simple present) is often used to indicate that state is permanent, repeated or habitual -- it expresses a simple timeless fact or situation. It can also be in a narrative sense.
One could say "She stands in the shade of a tree," if the context is a novel or screenplay.
One could say "The temple is standing in the heart of the city," if the context is that tomorrow it is scheduled to be torn down.