Gold heads higher for a second session as dollar retreats

Gold futures inched higher Thursday, a day after markets in the U.S. were closed in observance of the Fourth of July holiday, buoyed by some weakness in the dollar.

August gold GCQ8, +0.32% rose $4.20 or 0.3%, to $1,257.70 an ounce. That follows a 1% Tuesday rebound that helped the yellow metal claw back some losses that drove futures to the lowest levels of 2018. For the week, bullion prices traded 0.2% higher. The most popular fund tracking gold, the SPDR Gold Shares GLD, +0.37% meanwhile, was up about 0.2% this week, according to FactSet data.

Thursday’s action comes as the Dow Jones Industrial Average DJIA, +0.08%  and the S&P 500 index SPX, +0.18% traded higher.

Equities often trade inversely to gold, with stock benchmarks rising even as a Chinese official warned earlier Thursday that planned U.S. tariffs on Chinese products—a portion of which is set to take effect in less than 24 hours—could potentially ripple throughout the globe.

But “the U.S. is firing shots to the world, including to itself,” said Gao Feng, a spokesman for China’s Commerce Ministry.

In Europe, which saw the Stoxx Europe 600 index SXXP, +0.28%  also climb, German Chancellor Angela Merkel said the country was willing to cut import tariffs on cars as a way to end the Europe-U.S. trade standoff.

Concerns about fraying relationships between the U.S. and its longstanding trade partners in the European Union, North American and China, have helped strengthen the dollar and have weighed on commodities priced in the monetary unit, including bullion.

Those disputes, notably between the two largest economies, Beijing and the U.S., have rattled investors, and weighed on both equities and gold, the latter of which ordinarily would benefit from the uncertainty fostered by the dispute over global trade imbalances.

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