GLOBAL MARKETS-German ruling boosts stocks, gold falls

* Gold drops 3 pct a day after posting record high

* Swiss franc holds near central bank's target

* U.S. crude oil up more than 3 percent (Updates prices)

By Rodrigo Campos

NEW YORK, Sept 7 (Reuters) - World stocks rebounded from a two-week low on Wednesday and gold tumbled from a record high, thanks to a court ruling supporting the German government's efforts to bail out the crisis-stricken euro zone.

The European debt crisis has grown more fraught in recent weeks and efforts within Germany to stop Europe's strongest economy from helping to stabilize the region have pressured risky assets such as stocks.

The ruling from Germany's top court cleared the way for Germany to contribute more to the euro zone's rescue fund.

It also gave the country's parliament a greater say over bailouts, but that could potentially hamper Germany's ability to act decisively if the debt crisis worsens.

"This (ruling) just falls in the category of modestly positive news. But when you have a market that is so geared to any new development, even modestly positive news can have a great effect," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

The MSCI world equity index <.MIWD00000PUS> rose 2.0 percent a day after after hitting its lowest since Aug. 22. The index is still down 9.5 percent for the year.

Gold prices tumbled 3 percent as the sharp rally in stock markets prompted investors to take profits after the precious metal's rally to record highs in the previous session. Spot gold dropped 3 percent to $1,809.20 around 11 a.m. in New York (1400 GMT).

Global markets have been volatile of late as investors have periodically taken heart from signs that Europe has carved out a plan to deal with its sovereign debt crisis, but implementation has been rocky and slow.

Afflicted countries like Italy and Greece have been reluctant to push through austerity measures demanded by their partners, while other nations, such as Germany, have grown more reluctant to provide aid.

European stocks <.FTEU3> gained 2.6 percent, having hit a two-year low on Tuesday.

"This is just a lot of fine-tuning in terms of people not wanting to be too short or too long in a very volatile market," said Meckler.

Wall Street's Standard & Poor's 500 Index <.SPX> was up 23.41 points, or 2.01 percent, at 1,188.65.

U.S. crude oil jumped 3.5 percent to $89.04 a barrel ahead of inventory reports forecast to show stockpiles fell last week.

The Swiss franc, which along with gold, had been the safe-haven of choice for investors, held within the 1.20 per euro target set on Tuesday by the Swiss central bank to weaken the franc and prevent a recession.

The euro was slightly firmer, up 0.3 percent versus the U.S. dollar after the German court ruling in early New York trading, and the dollar index <.DXY> fell 0.33 percent against a basket of major currencies.

U.S. President Barack Obama is due to lay out a job-creation package on Thursday and G7 finance ministers and central bankers meet in Marseilles, France this weekend to discuss measures to boost global economic growth.

"A lot of investors are thinking about the president's upcoming speech and whether or not he can say or do something that will be seen positively," Meckler said. "I don't think it will be bold enough; I don't think many investors want to be short before the speech."

U.S. 30-year Treasury bonds briefly traded more than two points lower in price but settled back to trade 1-15/32 lower to yield 3.34 percent, up from 3.27 percent late Tuesday.

The benchmark 10-year Treasury note was last trading 15/32 lower in price to yield 2.03 percent, up from 1.98 percent late Tuesday. (Writing by Rodrigo Campos; Editing by Dan Grebler)