SINGAPORE, Jan 25 Gold gyrated in a tight range on Thursday, showing signs of fatigue aft

SINGAPORE, Jan 25 (Reuters) Gold gyrated in a tight range on Thursday, showing signs of fatigue after rising to its highest in more than seven weeks the previous day due to firmer crude oil.

Gold met selling pressure from investors in Asia, including those in China, after it failed to crack stubborn resistance at $650 an ounce.

Spot gold hit a high of $648.55 before dropping to $645.50 an ounce. It was quoted at $646.40/647.40 an ounce by 0433 GMT, down from $647.20/648.20 late in New York.

''There's selling interest from the physical side at around these levels,'' said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Gold shrugged off a stronger dollar and rose to its highest level since early December at $648.60 an ounce on Wednesday, tracking a rebound in crude oil.

But the metal would have to crack $650, a level last seen in mid-2006, in order to test new highs, dealers said. It has lost around 11 percent in value since hitting a 26-year high of $730 in May last year.

''I think gold will depend on the dollar and oil price again. We can say there's some resistance at $650 to $652. The downside are the levels that we have seen last time at $638 to $640,'' said Leung of Lee Cheong Gold Dealers.

Trading was also volatile in Japan. Benchmark gold futures on the Tokyo Commodity Exchange, currently December 2007, fell four yen per gram to 2,527 yen, having risen as high as 2,546 yen.

''I can say we have profit taking from the physical side as well as short selling. I also heard there's speculative selling in mainland China,'' said a dealer in Hong Kong.

''But I am still a bit bullish. It may try to test $650 later,'' he said, anticipating a possible lift from a weaker dollar.

The dollar fell to 120.60 yen, moving further away from a four-year peak of 121.80 yen hit earlier this week. The euro was little changed from New York levels at $1.2965.

Gold often rises when the dollar falls as the metal becomes cheaper for holders of other currencies. Gold is also seen as a hedge against oil-led inflation.

Silver eased to $13.17/13.24 an ounce from $13.18/13.25 late in New York. It touched its highest since mid-December at $13.26 earlier on Thursday.

Platinum rose to $1,169/1,174 an ounce, against $1,164/1,169 in New York. Palladium gained to $347/352 an ounce from $344/349.

REUTERS PV DB1233