In addition to copper, gold, silver, platinum and palladium have taken a severe beating from the trade retaliation threats, and they will probably remain in a downward trend over the near term. Threats against physical demand look to dominate safe haven interest as long as world financial markets refrain from excessive anxiety. The World Gold Council has predicted an increase in gold demand for the second half of the year due to increased safe haven interest and currency-related reversals, but we find that hard to believe in the short term. WGC predictions of rising inflation are particularly difficult to embrace given the recent pattern of CPI and PPI readings. But if aggressive tariff escalation sets up a chain reaction of rising prices, it could catch much of the marketplace off balance. Given the July 19 Presidential threat of tariffs on as much as $500 billion worth of Chinese imports, one should expect the whole trade situation to reach an inflection point soon.