Gold futures on the COMEX division of the New York Mercantile Exchange posted moderate gains on Thursday as U.S. dollars weakened and stock market slid.

The most active gold contract for August delivery rose 1.6 U.S. dollars, or 0.13 percent, to settle at 1,223.30 dollars per ounce.

Gold closed higher for a second straight session in response to the downturn of U.S. dollar. The U.S. dollar Index fell 0.39 percent to 95.82 as of 1741 GMT. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes down, gold futures usually go up.

Meanwhile, geopolitical risks have dragged down stock market, and also pushed the gold futures lower.

The latest missile launch by the Democratic People's Republic of Korea on July 4 has been labeled as "a new escalation of the threat" to the United States by Secretary of State Rex Tillerson. However, world powers are unable to agree on which step should come next.

As a result, the Dow Jones Industrial Average went down 90.30 points, or 0.42 percent, to 21,387.87 as of 1751 GMT. Analysts note that when equities post losses, the gold futures usually goes up.

As for other precious metals,silver for September delivery rose 8.7 cents, or 0.55 percent, to close at 15.983 dollars per ounce. Platinum for October delivery went up 1.50 dollars, or 0.17 percent, to close at 910.30 dollars per ounce.