After touching a more than two-month high at US$1,291.86, spot gold last added 0.2 per cent to US$1,288.81 an ounce.
In Asia, the Japanese Nikkei 225 index closed down 0.1% on Friday.
Nevertheless, the geopolitical uncertainty looks set to continue, dealers said, following Trump's fresh warning Friday that the U.S. military is "locked and loaded" in the event of a misstep by the totalitarian state.
"When it comes to assessing political matters (especially global geopolitics like the North Korea matter), we are very humble", Mr Dalio wrote.
The pan-European FTSEurofirst 300 index .fteu3 lost 1.01 percent and MSCI's gauge of stocks across the globe .miwd00000pus shed 0.12 percent.
In his latest warning to North Korea, US President Donald Trump said on Friday military solutions were "fully in place" and referred to American weapons as being "locked and loaded" should the nuclear-armed nation act "unwisely".
The European Union says it has slapped sanctions on nine North Koreans and four entities including the state-owned Foreign Trade Bank, in addition to those already on its sanctions list. The reclusive state raised the stakes further with a detailed plan to send a salvo of missiles towards the U.S. territory of Guam.
The S&P 500 dropped 1.4% to 2438.21, while the Dow Jones Industrial Average fell 204.69 points, or 0.9%, to 21,844.01.
The Japanese yen hit an eight-week high against the USA dollar, while spot gold also reached a two-month high. "When you're due, there's always going to be something that happens in the world that's going to make people nervous", Matthew Peterson, chief wealth strategist for LPL Financial in Charlotte, North Carolina, told Reuters.
Emerging market stocks lost 1.20 percent.
The U.S. consumer-price index, set for release before Wall Street opens, will be closely monitored by investors for clues on inflation and the Fed's next move, said Mr. Kamal.
The CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, was up as much as 12.63 points, its highest in more than a month.
If the North Korean regime "does anything" to the United States or a USA ally "things will happen to them like they never thought possible", he told reporters on Thursday, according to Bloomberg.
The pound has slipped by 0.1 percent versus the dollar, but has gained 0.1 percent against the euro.
US crude (CLc1) was unchanged at $48.59 per barrel and Brent (LCOc1) was last at $51.84, down 1.63 percent on the day. Hong Kong's Hang Seng Index plunged by 2%, while South Korea's Kospi Index slumped by 1.7%.
Looking to commodities, oil prices eked out gains in early trade, however sentiment was capped as concerns linger over OPEC's ability to rein in supply.