While Comex Gold and Silver are trading in a "Head & Shoulders" top formation, the US dollar index [DXY] is, with no surprise, forming a Reverse "Head & Shoulders" bottom. {See Chart}

In the event there is a breakout above the H&S neckline, the upside objective is determined by the height of the neckline from the head added to the breakout point at the neckline.

Fundamentally speaking, this breakout will coincide with the anticipated fed funds hike on Wednesday afternoon. Will the DXY rally? How high will it actually rise? Will the rally be a new bull trend? Or could this just be another "bull trap" flash in the pan event? We will soon find out.

If gold closes below the neckline:

• 4,223- 4,229 = neckline break
• 4,065 = first major support
• 3,900–3,850 = secondary shelf
• 3,791–3,800 = measured move zone
• 3,500–3,600 = overshoot zone

If spot silver closes below the short-term head & shoulders neckline (circa $63.50) the projected sequence is as follows:

• $63.50 - neckline break
• $62.40 - minor shelf
• $60.88 - first real support
• $59.40 - secondary support
• $57.99 - pre‑breakdown shelf
• $56.56 - major support
• $55–56 - measured move target
• $53–54 - overshoot zone