Precious metals ended up on Wednesday on the back of weakness in dollar during the day as the better than expected durable goods report led to improvement in risk appetite. Though the dollar ended slightly up against the euro. Gold also got support from the inflationary concerns that arose in Euro following the infusion of 442 billion euro by ECB.

Gold futures closed up 0.88 percent in the last trading session on MCX. Silver witnessed a rise of 0.33 percent, ending the day at 22370 on MCX.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,131.24 tonnes as of June 24, unchanged from the previous business day.

China should buy more gold because the dollar is poised for a fall and the metal is needed to support the greater international role envisaged for the yuan, a senior researcher with the ruling Communist Party said on Thursday.

The European Central Bank poured 442 billion euros ($613 billion) of one-year funds into money markets on Wednesday, its biggest fund injection ever.

The Federal Reserve held overnight interest rates in a zero to 0.25 percent range -- the level reached in December -- and said the U. S. economic recession was easing.

Bullions may trade sideways to up during the day despite stronger dollar as inflationary concerns and bargain hunting may trigger buying in precious metals.