Unprecedented rise in gold prices failed to resist investors to buy yellow metal during the year and it continued to be a safe and easy mode of alternate investment. Sliding dollar rates are likely to further raise gold prices, claim market analysts.

Yellow metal glittered further yesterday in European market to stand above $1,100 following the depreciation of dollar against Euro. Dollar declined half percent under year-end position adjustment, making the commodities priced in the US unit cheaper in terms of other currencies.

Meanwhile, the market remained almost cool due to absence of investors in the wake of New-Year holidays. Spot gold climbed to $1,106.60 an ounce compared to $1,092.55 in New York on Wednesday. Gold Future at the Comex division of the New York Mercantile Exchange surged $13.20 to $1,105.70 for scheduled delivery in February.

Feroz Merchant, the founder Chairman of a jewellery retail store Pure Gold, said, "When the gold price hiked, our customers were initially confused and shocked by the higher prices, but they now understand that prices will increase and they accept it."