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In today’s daily, I will present two totally different views – by the Aden Sisters and Larry Edelson – on where gold is headed in the near-term.  Both rely on technical analysis and yet both see a different move for gold.  Technical analysis isn’t an exact science and different people using the same data come up with different conclusions.  That’s why you have to be so careful when you read these TA-based articles.

The Aden Sisters, who have been around since Edelson was in diapers, are very optimistic.  Gold has already moved above the $1,650 resistance and is bearing in on $1,700.  That should give us reason to smile.  Here is an excerpt from their article “Get Ready for Take Off!”, which you can find at Kitco.com:

Once gold closes and stays above $1650, we could see it jump up to the $1700 level. Above $1700 means $1800 would be the next target.

If gold rises in a C rise, similar to the 2006-2008 C rise, gold could then reach record highs near the $2200 – $2400 level.

Although he isn’t a “perma-bear,” Larry Edelson has touted the bearish view since before the first of the year.  Here is an excerpt from his article “Why the Markets Are Headed for a Surprising Fall”, which you can find at Uncommon Wisdom Daily:

Gold needs to close above that line, more specifically above my system buy signal at $1,727.70, to confirm a breakout and a new bull leg higher.

Given all the resistance before that comes into play, I doubt very much that gold can pull off a breakout now, especially since the short-term cycles will soon be pointing down, into September.

Also notice the rounded formation of gold’s recent sideways-to-higher trading action. That’s corrective trading action, meaning this is the kind of trading action that is indicative of a correction to a bear market, and not the start of a new bull leg higher.

What about the fundamentals for gold? Yes, the long-term fundamentals are bullish. Europe and the United States are facing a monetary and sovereign-debt crisis. One that will eventually send gold to well over $5,000 an ounce.

Which is precisely why I recommend that long-term investors hold their gold. But in the short term, Europe’s crisis — which is not over — is bearish for gold.

In addition, gold demand in India and China is actually falling.

For the first time, today, Edelson softens his “bearish” views and backtracks a bit.  He also says:

If it turns out I’m wrong about the coming moves in the markets, so be it. I’ll make tons of money anyway, and so will those following my forecasts.

Reason: I’m not a perennial bear, like a stopped clock that’s right twice a day. I’m actually very bullish long term on everything from precious metals to stocks — the only exceptions being U.S. Treasury bonds and the dollar.

So when the real bull emerges for gold, silver, oil, and other commodities and stocks, I’ll be riding it — planning to make more money in the next two to three years than most people make in a lifetime.

Ranting Andy Hoffman, who has never been accused of sugar coating his opinions, and who has little use for the likes of Larry Edelson had this to say yesterday in his Mailbox section:

CHARLATANS like “Larry Edelson” – who I had NEVER HEARD OF until I joined Miles Franklin last year, and became inundated with emails worried about his FEARMONGERING – are more dangerous to truth seekers like us than Jamie Dimon, Ben Bernanke, and Mario Draghi combined.

I have railed against such scum for years, and will continue to do so until everyone I can possibly convince stays away from them.

P.S.  The second the Cartel attacks – and takes gold down a measly $30-$50 or so – he’ll be BACK proclaiming the beginning of the next “big correction.”

Louise Yamada is a highly regarded establishment commentator.  Her bold forecast for $5,000 gold carries a lot of weight.  This is not your typical MSM gold commentary.

Louise Yamada predicts $5200 gold by 2018

Those presenting a bearish case for gold (and silver) are pretty much in the minority now.  The thing is, even if they will be proven right, the (Cartel engineered) correction will not be severe and will not last long and the bounce back up will be decisive and take both precious metals to new all-time highs by the end of the year or at the latest into early 2013.