Price of gold soars, with chance of more upside

THE economic outlook appears gloomy as we head into the second half of 2019. Several key factors have contributed to these economic headwinds. Chief among them is the US-China trade war while the Brexit situation between the United Kingdom (UK) and the European Union (EU) continues to be a worry.

The US-China trade war could potentially escalate into a cold war between the two countries as recent talks have broken down. Also, each country seems keen to exert its influence within its borders, with the US increasing visa restrictions on Chinese academia. In response, China recently issued an official warning to its students looking to go to the US.

Meanwhile, the Brexit issue has been dominated by news of an election for a new UK Prime Minister (PM) following incumbent Theresa May's announcement of her resignation. A new UK PM will be in office after the electoral process ends in July. Despite an upcoming change in leadership, it is doubtful that a Brexit deal desirable to both the UK and the EU would be forthcoming as the exit date of Oct 31 continues to draw nearer and with it, a potential no-deal Brexit.