It is far from a perfect hedge and may need to be held for longer periods to be effective as inflation hedge

The recent rally in gold prices is believed to have a linkage with the rising sovereign risks and defaults across the global financial markets. The yellow metal is often cited as a safe haven for investors thanks to the fact that unlike financial assets, gold is not other's liability. Historically, gold prices have reacted to demand arising from economic scenario and the current rally amidst global slowdown supports this notion. However, one section also raise questions over gold's perceived characteristics.

Indian equities markets belled the week on a negative note with a key index 2.36% lower than its previous closure on Friday (Feb 27).

Markets were down following heavy selling pressure witnessed across metal and banking stocks. The melting Asian markets added to the negative sentiment.

Brokers said that the stock market opened lower tracking a reduction on the other Asian equity markets after the US stocks fell to 12-year lows on Friday on deepening economic fears.

Taipei  - Taiwan stocks lost 2.88 per cent Monday, dragged down by Wall Street's sharp decline over US banking woes in previous trading, dealers said.

The main TAIEX index opened sharply lower and extended its heavy losses to close at 4,425.83, down 131.32 points, or 2.88 per cent.

Dealers said US banking fears put local finance shares under heavy pressure, and reports about lender HSBC's plan to scale back its US consumer finance operations further dampened the market sentiment.

Sydney  - Australian stocks t

Tokyo  - Japan's key Nikkei 225 Stock Average lost more than 3 per cent Monday following Wall Street's decline before the weekend and the yen's advance against the US dollar.

The benchmark Nikkei 225 Stock Average plunged 242.46 points, or 3.2 per cent, to 7,325.96.

The broader Topix index of all first section issues was also down 18.6 points, or 2.56 per cent, to 738.11.

After opening the day on a flat note, Indian equities closed the week on a negative note with Realty stocks being hit the most.  

After the announcement of depressing GDP numbers, the 30-share BSE Sensex slipped further downwards.

A fag-end buying assisted Sensex to recover the majority of its heavy losses but still closed down by 63 points.

Bears spared midcap and smallcap counters. The BSE Midcap index fell 0.04%, whereas Smallcap index lost 0.22%.