You can see by the chart of the IAU that gold is extremely overgought with the stochastic over 70 and rising while the MACD is signaling a dangerous bearish crossover. It won't occur though until after the FED cuts interest rates. That's when gold will experience its exhaustion rally, the rally we will short into by closing the long GLD position and keeping the short on IAU. As long as IAU stays above the 8 day EMA it must be considered bullish. Wait until after the announced rate cut.
Link:http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=IAU&time=8&freq=1
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