Gold Dips as Volatility Widens; Oil Rallies & Tokyo Stocks Hit 26-Month Low

Spot Gold Prices fell $6 from an overnight rally to $911 per ounce just before the London open on Tuesday, continuing the wide volatility seen late Monday as Asian stocks fell and the US Dollar held at 7-week lows vs. the Euro and Japanese Yen.

Japan's Nikkei fell 1 percent, finishing below 14,000 for the first time since November 2005 after Bank of Japan chief Toshihiko Fukui said Japan's economic growth will "slow for some time."

The US Dollar held near to Monday's seven-week lows vs. both the Japanese Yen and the Euro ahead of on Tuesday on concern that weak U.S. bank earnings will push the economy closer to recession, fuelling expectations for more Federal Reserve interest rate cuts.

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