Gold fell slightly on Tuesday after rising to a near two-week high the previous day, but buying interest persisted at lower levels as investors slowly regained confidence in the precious metal.

Spot gold was at 625.10/625.60 an ounce at 0634 GMT, after earlier hitting a high of $626.75.

"The tendency is to buy on dips, mainly from investors. We should test the upside and make our way up to $635 to $637," said a dealer in Singapore.

"For today, we can put the trading range at between $620 and $635," he said.

Gold was quoted at $626.00/627.00 late in London on Monday, when it had risen to as high as $627.80 an ounce, its highest since Jan. 4, on the back of technical buying and a slight dip in the dollar against the euro.