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Breaking News: Safe Haven Rose After Apple Revenue Warning

Posted by Fullerton Markets on February 18, 2020 at 5:47 PM


Apple Inc’s revenue warning underscored the financial fallout of the coronavirus epidemic in China. More companies may lower growth forecast for the near term. Buy XAU/USD at dip.

  • Gold rose to a 1-month high after Apple warned investors on Monday, Feb 17th that their revenue could be hit from the ongoing coronavirus epidemic in China.
  • With most of their supply chains and demand for their products in China, businesses will be hit with the worsening situation in China.
  • Although Apple said that they expected the business disruption to be temporary, as long as the coronavirus outbreak continues to worsen, a global economic slowdown is expected.
  • We believe that most companies will also start to report lower growth and revenue forecast in line with the global economic slowdown.
  • Central banks around the world are also looking to loosen monetary policy, either by cutting rates or providing liquidity to the economy. This will in turn cause a further strengthening in gold.
  • XAU/USD is currently hovering around its resistance and the sudden gap up yesterday could create profit-taking from investors.
  • We expect a retracement back to the 1574. If that doesn’t hold, we could expect the next support to be a good entry at 1561 price level.


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