Scotia Mocatta’s Simon Weeks noted the fact that “Sideways would appear to be very much the order of the day at the moment with the $1,395 – $1,400 level looking like a tough nut to crack on the upside whilst the $1,365 – $1,375 range has been providing solid support on dips.”  Weeks pointed out that “ETFs continue to lose inventory and the metal continues to perform poorly on the crosses whilst on the positive side we continue to see physical off-take on dips – all of which means that in the short-term we are going nowhere fast, but given the markets inability to attract fresh money one has to think that at some point, and we could be talking the autumn here after a quiet summer, that the weight of liquidation and negative sentiment will weigh increasingly heavy on the price.”

Precious metals stocks traded near unchanged on Monday.  The Market Vectors Gold Miners ETF (GDX) rose $0.07 to $28.19, led by a $0.25 gain for Newmont Mining (NEM).  Global X Silver (SIL) sank $0.11 to $13.49.  Fortuna Silver (FSM), which was rated a new “Buy” by Dundee equity analyst, Chris Lichtenheldt, fell $0.07 to $3.52.  Silver Standard Resources (SSRI) sank $0.15 to $7.07 and has now fallen 52% in 2013.

TD Securities analyst Dan Earle downgraded shares of Torex Gold (TXG-T) this morning, noting “Torex announced receipt of its environmental permits for the Morelos Gold Project (100%); construction is expected to commence in July.  The company has $381mm in cash (Mar 31) which it expects to spend over the next 12 months; we forecast additional financing of $500mm over the next two years without considering potential cost overruns.”

Earle went on to note, “We are downgrading to REDUCE to reflect our concerns re near term financing and valuation; we do not view the company as a strong acquisition target and do not see continued exploration as a positive catalyst.”

On the other side of the coin, Macquarie Capital Markets analyst, Michael Gray, reiterated its “Outperform” rating and raised its price target to $3.75 from $3.50 on shares of B2Gold.  Gray highlighted the, “plethora of exceptional targets, all permitted for drilling within its Mining Licence.”  Gray noted, “B2Gold is well positioned for the documentation of near-pit resources and the discovery of raw, potentially game-changing new zones associated with regional targets.”

All eyes turn to Fed Chairman Bernanke this week.  Martin Murenbeeld, Chief Economist at Dundee Wealth Economics, highlighted this week’s Federal Open Market Committee meeting as key for the gold price’s direction.  Murenbeeld noted the market’s concern with “Fed tapering” and reiterated the importance of this week’s (June 18-19) FOMC and the press conference that will follow. Dundee’s chief economist stated, “Let me therefore repeat my position that the Fed will not “taper” soon. The Fed is currently buying $85 billion ($45 billion Treasuries, $40 billion MBS) and I expect it to continue  purchasing at a rate of $60-85 billion per month through year-end. (There will be, I think, a small “tapering” before the year is out.) Fed purchases will end sometime in 2014, but if Janet Yellen is Bernanke’s successor – which is most likely – then the end will be later rather than sooner.”

Gold prices have been unable to gain any upside traction as investors focus on when and at what rate the Fed will begin to end its asset purchase program.  With interest rates firmly planted in negative territory, the fundamental backdrop for the price of gold is bullish, however, until investor sentiment improves, the current consolidation is likely to continue.

 It continues to be a rough day for numerous mining and ETFS stock which also saw their stock stumble. Randgold REsources Limited, Harmony Gold Mining Co. Ltd. and Sprott Physical Gold Trust were the only stocks to see their prices rise. After a few days of being negative, Physical Asian Gold also saw their stocks gain nearly 2%.

 This comes after news that the jobless claims in the United States has increased following a patch of steady decline.  The Labor Department reported that almost 10,000 people applied for unemployment in the past week alone increasing it to about 354,000 people. 

 In mining stocks and ETF, all stocks saw an uptick in stock except Physical Asian Gold which decreased by $1.75. Randgold Resources Limited gained $3.52 while Harmony Gold Mining Co. climbed 11.6%. 

 It was also a relatively good day for mining stocks and ETFS. Although numerous companies saw their stock increased it was only by a few cents. The biggest riser was Randgold Gold Mining Co. Ltd that increase $1.57 while Agnio-Eagle Mines Limited saw their stock grow nearly 2%. When it came to ETFS, Physical Asian Gold was again the only ETF that did show a profit. The ETF was down almost 1.3%.

 This factor could be directly related to news that Industrial Banking Firm, J.P. Morgan Cazenove slashed their gold outlook to $1,595 an ounce, down from $1,745 an ounce. They also cut down their outlook for 2015, stating that the price of gold would be around $1,650 an ounce which is down almost 5%. Although gold still has time to prove investors wrong, it’s not off to a very good start.

 Still many analysts and gold metal enthusiasts beg to differ, stating that gold prices will rise again, it just needs time. With many countries selling their gold reserves and the wedding season upon us, things seem like they’re looking up for the time being. 

 When it comes to mining stocks, most stocks were down while all ETFS stocks were negative. Only Eldorado Gold Corp, Novagold Resources Inc. and Seabridge Gold were up, eight cents, four cents, and thirteen cents respectively. Physical Asian Gold was down $1.75 while Randgold Resources was down $2.21.

 When it comes to gold, anything could happen. Many analysts are confident that this is the end for gold. For others like Paul Schatz, the president of Heritage Capital, well he still thinks gold has a little fight left in it. In a note to clients he wrote, “I do not believe there is enough evidence at this time to conclude that the secular bull market in gold has ended.” In fact he thinks people are too negative when it comes to gold prices. His advice? “If you give it a little room I think the next big move in gold is to the upside.”

 Buying, keeping, and selling stock is a private matter. People like Schatz can give you suggestions, but you ultimately must make the decision. With such a volatile market, chances are we’ll see prices ebb and flow before leveling out. But if you expect it to happen overnight, it just won’t happen.