Dow Jones Declined, While the Price of Gold per Ounce has Increased

Dow Jones Declined, While the Price of Gold per Ounce has Increased.It was chaos in the stock market today. S & P 500 and Dow Jones declined, while the price of gold per ounce has increased. U.S. markets fell today on fears of financial crisis in the euro area and the deterioration in the credit rating in the U.S., but not quite as much as was feared.

The stock index fell 43.88 Standard & Poor points, or 3.66 percent, in afternoon trading. The Dow Jones industrial average fell 314.85 points, or 2.75 percent, and the Nasdaq fell 94.94 points, or 3.75 percent.

Two factors appear to have slowed the decline in treasury bills, in a context of crisis in the euro area, there are few assets that are less risky than U.S. government bonds, investors flee rather than Treasury bills is stayed put, and secondly, the market was already recognized in the bad news about the U.S. economy.

One of the major puzzles of the countries that the U.S. debt - like China - is that there really is no other resource quite deep or liquid enough to absorb all of their investments. A significant step to divest from any major creditors such as China or Japan took the panic, which can undermine the value of dollar-denominated assets of these countries. In the end, really have no choice but to stay invested in the fund.

The Treasury market was more than $ 9.3 trillion of debt outstanding at last count. Frightened investors, by contrast, is based on the safety of treasures to offer in these troubled times.

The five-year notes the Treasury in fact led to upward movement. In a sign of force performance has decreased by 0.1%, the largest in the bond market.

The 30-year bonds, but has not done so well. Its price dropped interest rates were low, as a result of investors to sell long-term Treasurys and moves in the short dated notes.

The benchmark 10-year note climbed actually 20/32 in price, bringing the rate to 2.485% 2.554% to go.