Gold was up for the third day, hitting an intra-day high of $1,280.38 an ounce that was last recorded mid-June.
Federal funds futures suggested the chance of rate hike in December fell to 40 percent from 42 percent shortly before the release of the data. South Korea's Kospi lost 1.7 percent, while Hong Kong's Hang Seng slid 2 percent.
The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, ended at a session low of 11.11 after rising as high as 12.63.
"We believe continued sabre-rattling between the two nuclear powers could take gold prices higher still". Investors welcomed new data showing US inflation at the consumer level inched higher last month, suggesting that the Federal Reserve may be less likely to raise interest rates next month.
The pan-European FTSEurofirst 300 index lost 1.01 per cent and MSCI's gauge ofstocks across the globe shed 0.26 per cent for a weekly loss of 1.6 per cent, the largest since the week to November 4.
The North Korea situation isn't the only thing weighing on stocks.
Trump issued a new warning to Pyongyang on Friday, saying in a tweet: "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely". Eastern time. The Dow Jones industrial average slid 120 points, or 0.5 percent, to 21,928.
Trump warned North Korea again on Thursday not to strike Guam or USA allies, saying his earlier threat to unleash "fire and fury" on Pyongyang if it launched an attack may not have been tough enough. Kohl's also declined, sliding $3.62, or 8.6 percent, to $38.31.
"A global stock market fund will have its fair share of value and growth companies, unlike -say- the FTSE 100 index which is predominately value-orientated with its bias towards energy, mining and financial, or the Japanese TOPIX which is growth-orientated with a predominance of consumer goods companies".
The Japanese yen last strengthened 0.03 per cent versus the greenback at 109.22 per dollar.
Foreigners and retail investors offloaded shares worth more than 286 billion won (US$250 million) and 168 billion won, respectively, while institutions scooped up more than 429 billion won, keeping the main index from falling further. EIA reported that U.S. crude inventories fell last week as refineries boosted output to the highest percentage of capacity in 12 years.
Perrigo rose $1.58, or 2.1 percent, to $78.43. Morgan Stanley fell 70 cents, or 1.5 percent, to $45.61.
USA gold futures for December delivery rose 0.8 percent to $1,272.00 per ounce.
Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in USA crude inventories, leaving prices volatile.
Elsewhere in commodities, the September crude contract was up 39 cents to $49.56 United States per barrel, September natural gas advanced six cents at $2.88 U.S. per mmBTU and September copper declined two cents at $2.93 USA a pound.