Gold and silver prices are moderately higher in midday U.S. trading Tuesday, supported by a drop in the U.S. dollar index early this week. Also, the competing asset class of U.S. equities is weaker today. June gold futures were last up $3.40 an ounce at $1,284.90. July Comex silver was last up $0.027 at $14.96 an ounce. In the spotlight now is the Federal Open Market Committee (FOMC) meeting that began this morning and ends Wednesday afternoon with a statement and a press conference from Fed Chairman Jerome Powell. While no change in U.S. monetary policy is expected at this meeting, traders will closely scrutinize the wording of the FOMC statement and the comments from Powell. U.S.-China trade talks resumed today, with U.S. officials in Beijing. U.S. Treasury Secretary Mnuchin said in an interview late Monday that the talks are near conclusion and could wrap up next week. He added there remains some work to do on the matter, however. Most of the marketplace is fairly optimistic the U.S. and China will reach a trade deal in the coming weeks. The key “outside markets” today see the U.S. dollar index down on more profit taking after hitting a two-year high last Friday. Meantime, Nymex crude oil prices are higher and trading around $64.00 a barrel. Both of these markets were in bullish postures for the metals markets today. Since the beginning of this year market participants have witnessed the Federal Reserve do a 180° turn and pivot as it revamped its monetary policy which contained consistent small incremental rate hikes and a balance sheet liquidation that was on autopilot, to a much more accommodative stance. As recently as December of last year the Fed laid out its plans for four rate hikes in 2019, and a continuation of monthly balance sheet liquidations. In essence the Fed Chairman must walk a tight rope, and according to Ellen Zentner, chief U.S. economist at Morgan Stanley, “If Powell sounds too optimistic, it might spark market concern the next move is a hike and if Powell presses the point that inflation is running low, he runs the risk of confirming market expectations that the next move is a cut and imply that that cut is not far in the offing.”