U.S. stocks on Friday ended with their worst weekly loss since March after Trump ratcheted up his fiery rhetoric, saying in a tweet: "Military solutions are now fully in place, locked and loaded" against North Korea.
"There is a continuation of flight to the safe havens after remarks on Thursday evening from Trump about North Korea", said Quantitative Commodity Research consultant Peter Fertig.
Johannesburg/London - Gold prices climbed to two-month highs on Friday as investors sought refuge from escalating tensions between North Korea and the United States, while bullion also received support from weak USA inflation data.
Investors have also headed to other traditional havens, such as the Swiss franc and the Japanese yen. The Russell 2000 index of smaller-company stocks picked up 1.69 points, or 0.1 percent, to 1,374.23.
Trump ratcheted up his rhetoric toward North Korea on Thursday, saying it should be "very, very nervous" if it even thinks about attacking the United States or its allies, after Pyongyang said it was making plans to fire missiles over Japan to land near the U.S. Pacific territory of Guam.
In forex trading, the dollar fetched 109.99 yen, almost flat from 110.02 yen in NY but up slightly from 109.74 yen in Tokyo Wednesday. The euro held steady at $1.1752.
Disappointing listed-company earnings for the second quarter, largely due to weaker-than-expected net profits of large firms, also dampened investors' risk appetite, Mr Chaiyaporn said.
"With concerns over stubbornly low inflation weighing heavily on the prospect of another US interest rate increase, the pending US CPI data will be in sharp focus".
The precious metal enjoyed a 2.2% rise to $1292 per ounce, close to its high for the year. US gold futures gained 0.50 percent to $1,296.60 an ounce. Prices for bonds and gold headed higher.
"We have not had a 5 percent correction since June 2016".
Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in US crude inventories, leaving prices volatile. Brent crude, used to price worldwide oils, added 26 cents to $52.96.
"Geopolitical tensions are the main focus: the S&P 500 was down 1.5 percent last night and many investors are becoming risk averse".
Japanese, British and US 10-year government bond yields are also at or close to their lowest level since late June.
The Labor Department said consumer prices edged up 0.1% in July following no gain in June.
Phipps said investors were reassured after Dallas Fed President Rob Kaplan's said on Friday that the Fed needs more evidence of progress toward its inflation goal before raising rates again.