Gold settles at new 17-year peak

Fri Sep 16, 4:04 PM ET

NEW YORK (Reuters) - U.S. benchmark gold futures closed at a 17-year high on Friday as robust demand for bullion and jitters over inflation and the U.S. economy stoked a buying spree in the precious commodity for a second straight day.

December delivery gold on the New York Mercantile Exchange's COMEX division climbed $4 to end at $463.30 an ounce. The session high at $464 was the loftiest level for a most-active futures contract in New York gold since June 1988.

Gold's rally this week has added $10, or 2.3 percent, to the December gold contract.

Prices extended gains after first hitting a 17-year peak on Thursday as money from investment funds and independent traders continued to flow into the market, traders and analysts said.