Gold bounced back and held above $650 ounce on Thursday with the help of firm oil, but the metal looked vulnerable after several failed attempts to breach key resistance around $660 an ounce.

Sales of gold scrap from Indonesia and Thailand dominated the physical sector in Southeast Asia, though dealers also noted some buying interest from India, the world's largest consumer.

In other precious metals, platinum fell after jumping to a 10-week high of $1,200 on Wednesday on speculative buying as well as purchases by Chinese jewellers ahead of the Lunar New Year later this month.

Spot gold rose to $652.70/653.40 an ounce from $651.70/652.40 an ounce late in the U.S. market on Wednesday, when it dropped more than $1 after crude oil reversed gains.

"The market remains choppy with gold unable to break out of recent ranges," Investec Australia said in a report.

"A concerted break above $660 may open the door for further buying, but in the absence of any break then gold looks vulnerable in the short term to move back below the $650 level," it said.

Gold rallied to a six-month high of around $661 an ounce last week but attempts to revisit the level were met by profit taking, in which jewellers and speculators cashed in their holdings.

Dealers said gold would have to crack $660 to reach new highs around $670 and $680, with the help of either a weaker dollar or firmer oil.