U.S. benchmark gold futures raced to a new 17-year high Friday morning as robust bullion and investment demand and fears of inflation and U.S. economic growth stoked a second straight session of broad-based buying.

December delivery gold on the New York Mercantile Exchange’s COMEX division was up US$2.40 at $461.70 an ounce by 10:38 a.m., after hitting $464 in the opening minutes.

The session high was the loftiest level for a most-active futures contract since June 1988.

Prices rose further after scaling a 17-year peak Thursday as waves of speculative buying wiped out clusters of sell orders established by traders who had expected the bull-move to peter out in front of $460 an ounce, traders said.