Gold futures closed easier on disappointment at the minor US rate cut on Tuesday, while palladium tracked Nymex's losses overnight to end lower, they said.

Platinum futures ranged from eight yen per gram up to four yen down. Benchmark August ended up eight yen at 1,476 yen, rebounding from the day's low of 1,446 yen.

"Platinum fell sharply at the opening on follow-through sales after Nymex's plunges overnight. But the market regained ground in line with the dollar's rise above 135 yen," one brokerage analyst said.

Short-covering was also encouraged by Tuesday's news that members of South Africa's National Union of Mineworkers (NUM) would begin strike action on Wednesday at refineries of Impala Platinum Holdings Ltd, traders said.

They said overall sentiment on platinum remained bearish due to negative technical signals and the lingering economic slump in Japan, the world's biggest platinum consumer, and that sustained recovery could not be expected.

In the currency market, the dollar rebounded from the day's low of 133.90 yen to a high of 135.82 yen by late Tokyo trade on Wednesday, as Tokyo share prices tumbled at the close of the first half of the current fiscal year, currency dealers said.

In the stock market, the Nikkei average closed down 415.04 points or 3.00 percent at 13,406.39 -- its lowest closing level since February 21, 1986.

Gold futures ranged from steady to seven yen per gram lower. Benchmark August ended off three yen at 1,268 yen.

There was a disappointment at Tuesday's 25-basis-point cut in key short-term interest rate by the US Federal Reserve, as some operators had expected a 50-basis-point cut, traders said.

But underlying sentiment remained positive, against a backdrop of concerns about troubled US hedge funds and their negative influence on U.S. And European banking sectors.

"Gold is expected to test the upside target at $300 by the end of this week," one trader said.

Silver futures ranged from 2.2 yen per 10 grams higher to 1.8 yen down. Benchmark August ended up 0.6 yen at 224.3 yen.

Palladium futures ranged from 18 to 33 yen per gram down. Benchmark August ended down 18 yen at 1,130 yen, as operators liquidated longs after the New York market sustained large losses on Tuesday, traders said.

Spot palladium was expected to stay in a range of $270 to $290 an ounce for a while, with the downside supported by physical buying and topside capped by spot sales by Russia, they said.