FED WATCH: As well as monitoring the geopolitical backdrop, investors are looking ahead to an appearance Thursday by Bill Dudley, president of the U.S. Federal Reserve Bank of NY, for signs of the Fed's outlook on the economy.
"The data confirms the Fed will have a wait-and-see attitude", said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.
North Korea said it was considering plans to fire missiles at Guam, a US -held Pacific island, after President Donald Trump on Tuesday warned the nuclear-armed nation that it would face "fire and fury" if it threatened the United States.
"(Safe-haven demand) has settled down to a certain extent, but the market is still expecting more news to come", said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.
"U.S. markets had previously been becalmed amidst the Goldilocks scenario of strong profit growth, low interest rates and full valuations".
Missile makers Raytheon and Lockheed Martin have outperformed Wall Street by nearly 4 percent in recent days and the Dow Jones U.S. defence index is at a record high and on a seven-day unbroken run of gains.
Gold prices surge in Dubai, will it rise further?
It soared over 2 per cent in the previous two sessions, and is set for a weekly gain of 2.25 per cent. Housebuilders Persimmon, Taylor Wimpey and Barratt fell by 2.8 to 3% on weak house price data .
The pan-European FTSEurofirst 300 index lost 1.19 percent.
The Dow Jones industrial average closed 0.9% lower on Thursday, while the S&P 500 dropped 1.5% and the Nasdaq shed 2.1%. MCX Silver was higher by 0.76% at Rs 38,885 per 1 kg. "Risk aversion is still very much a concern for markets".
Traders said hedge funds had cut leveraged bets against the franc, prompted in part by worries about increased US-North Korea tension.
The Swiss franc and Japanese yen are often sought out in times of geopolitical tension or global financial stress, partly because both countries have big current account surpluses.
The Standard & Poor's 500 index fell 10 points, or 0.4 percent, to 2,463. The market was waiting f or USA consumer inflation data on Friday that would offer more clues about future Fed decisions.
The data comes amid tepid inflation that has remained below the Fed's 2% target, despite low unemployment.
The dollar index, which measures against a basket of currencies, fell 0.05 percent.
Pochettino promises Spurs spending before transfer window shuts
Personally, the standout moment for me is the emergence and maturing of Harry Kane into one of the best strikers around. Benitez has not lost any of his previous eight Premier League home games as a manager against Spurs (W5 D3 L0).
Sterling was last trading at $1.3013, up 0.30 percent on the day.
Trump continued to ramp up the rhetoric with a post on Twitter this morning indicating that the U.S.is prepared to take military action against North Korea.
The yield on USA 10-year Treasurys slid to 2.199% Friday from 2.211% Thursday.
The 30-year bond last rose 5/32 in price to yield 2.8107 percent, from 2.818 percent late on Wednesday.
Spot gold rose 0.5 percent to $1,266.20 per ounce at 0054 GMT.
Gold rose 0.6% to $1,268 (£976) an ounce and platinum gained 0.6% to reach $972.95 an ounce, having hit its highest since April at $979. On commodities markets, oil advanced with United States crude nearing $50 a barrel after figures from industry group the American Petroleum Institute showed a sharp decrease in stockpiles, a clear indication of the easing supply glut.
Seadrill Limited (SDRL) Upgraded to Hold by BidaskClub
Shares last traded at $0.357 just below $0.40, the 50 day moving average and barely below the 200 day moving average of $1.07. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share.
- Manchester City overwhelmingly the pick to win 2017-18 title
- European Stocks Deepen Declines as North Korea Tensions Linger
- Rooney scores as Everton beats Stoke 1-0 in Premier League
- China vows to adhere strictly to United Nations sanctions on North Korea
- Stocks plunge amid growing North Korean-US tensions, gold continues rise
- Sean Dyche says Burnley's win over Chelsea quietens doubters
- Fenway Sports Group speak out on Philippe Coutinho's Liverpool future
- Usain's cousin: "I'm happy Justin won it".
- Conor McGregor shows off boxing moves during open workout in Las Vegas
- Dollar at eight-week low vs yen as North Korea tensions simmer