The Dow opened up 100 points on Friday before profit-taking kicked in and a steady decline eventually saw a close down 171.
Barclays Capital suggests rather than reducing exposure to commodities when volatility increases it should be retained as there is little link between equity market and commodity price returns.
The Dow managed to add another 100 tenuous points as the Bush Administration steps up its fiscal rescue.
Hopes of a rescue for stricken US bond insurers helped to encourage buyers back into stocks as the Dow turned down 300 into up 300.
Wall Street saw what happened in the rest of the world and opened the Dow down 464 points. But the Fed decided to make an emergency rate cut of 75 basis points and the Dow came racing back.
Citi has joined the Buy recommendations on gold miner Avoca Resources on a day when gold stocks have been slammed.
Stocks in Asia, Europe and elsewhere suffered huge falls yesterday and overnight as all confidence is lost in the financial sector and the Bush rescue package is seen as inadequate.
According to BMO’s Donald Coxe gold has rallied as it is an asset that cannot be written down, so the group continues to like the yellow metal.
The Dow managed to rise 38 points despite weak economic data, spurred on by the tech sector. The Nasdaq was up 1.5%.
The Dow lost 25 points in a volatile but thin session last night, following news the Chinese government had bought into Morgan Stanley.