Kathmandu, August 22:

Gold started picking up again this week, closing at Rs 860 higher to go to Rs 19,720 from last Friday’s Rs 18,860 in the domestic market.

Weak US currency and rise in the price of crude oil pushed the precious yellow metal higher, according to Nepal Gold and Silver Dealers’ Association (NEGOSIDA).

“The increase in gold price in the international market and domestic also due to the upcoming Teej festival might be the reasons for the increase in the price of gold,” it said.

Due to Gai Jatra last Sunday, the domestic market opened on Monday at Rs 18,860 per 10 gram. Price remained constant on Tuesday as well. However, it went up to Rs 19,375 on Wednesday. The market closed today at Rs 19,720 per 10 gram.

The price of gold this week continued to rise to $835 per ounce in the international market also. It was $797 per ounce last Friday.

Gold, however, is down by 20 per cent from its high. The precious yellow metal had peaked at around $1,000 an ounce this March. Now it’s around $800.

However, gold is up by 200 per cent since 2002. From January 2002 to earlier this year, gold soared from less than $300 an ounce to $1,000 an ounce — an incredible run.

Even better, the run was remarkably painfree with the exception of a fall of 20 per cent or so in May 2006.

Even though gold has of late gone down by $200, investors are still up by about 200 per cent since the beginning of 2002.

Gold soared from $35 to near $200 by 1975. But then, by the six-years-and-eight-months mark, gold had fallen to around $100 - nearly a 50 per cent fall. But if we have a look at the rest of 1970s the 50 per cent decline turned out to be just a blip.

From 1970 to January of 1980, gold ran from $35 to $800. Despite its 50 per cent fall in 1975-76, the current ‘bear’ market is simply a painful correction in gold’s ongoing bull market. What should happen is gold resuming its gains versus all currencies.

Gold is priced in US dollars. And the dollar has had its finest one-month run in a very long time. All the currencies have lost over 10 per cent of their value in a month versus the US dollar.

Meanwhile, silver that opened at Rs 358.50 per 10 gram on Monday also closed 50 paisa higher today to reach Rs 359.