Gold was almost flat on Thursday, taking a breather a day after hitting an eight-week high of more than $940 per ounce on a rally in oil and the dollar's slide to its lowest level in nearly five months.

The world's largest gold-backed exchangetraded fund, the SPDR Gold Trust, said holdings stood at 1,105.62 tonnes on Wednesday, unchanged since May 13.

Demand for gold in the Middle East fell 26 percent year-on-year during the first quarter of 2009 as economic uncertainty and high prices discouraged buyers, according to an industry report released on Wednesday

The dollar fell to a two-month low against the yen on Thursday, extending a slide made the previous day when optimism about the economy that reduced safehaven demand for the greenback.

Federal Reserve may buy more govt. securities which is slightly positive for Gold and we may see Gold touching $948/oz but we recommend to book profits as there are no evidence of improvement in retail or ETF demand, which is negative for Gold. Silver we continue to recommend to buy at dips.

Gold continued upwards yesterday. Today above 14400 levels gold is expected to come up to 14535 levels during the day. Thus one can remain in long, however should book-profits on marginal gains.

Silver prices also are expected to move positive above 22400 level. Thus one can remain long in silver at lower levels targeting
22800 levels during the day.