Wall Street indices opened modestly higher later on Friday as USA investors looked for an end to the three-day losing streak. It usually moves opposite to stocks' movements and rises when the S&P 500 falls.
On Wall Street, Walt Disney dragged the Dow Jones lower at the open.
"After today's data and commentary from Dudley, if we see even a near-miss on CPI tomorrow, I think the dollar has got quite a bit of room to sell off", Mr Sweeting said.
If North Korea launches an attack that threatens the United States then China should stay neutral, but if the United States attacks first and tries to overthrow North Korea's government China will stop them, a Chinese state-run newspaper said on Friday.
"The market's reaction is an assessment of the geopolitics, also of liquidity", said Mr Ken Peng, a Hong Kong-based investment strategist with Citi Private Bank. The Dow slid 33.08 points, or 0.2 percent, to 22,085.34. Australia's S&P/ASX 200 dropped 1.1 percent to 5,696.80. "The gold market shows various signs of ambivalence and we believe that this pattern will continue into the foreseeable future", Norbert Rucker, head of macro & commodity research at Julius Baer, said in a note.
The 30-year bond last rose 5/32 in price to yield 2.8107 percent, from 2.818 percent late on Wednesday. The index is bouncing off its lowest closing level in six months.
Gold has rallied 2.3% this week on the heels of renewed tension with North Korea.
KOREA JITTERS: With President Donald Trump warning North Korea of "fire and fury", investors have become concerned that the war of words between Washington and Pyongyang could escalate. The Vix, a measure of how much volatility investors expect in stocks, jumped to its highest level since May.
Outside of geopolitical concerns, disappointing company earnings and outlooks put traders in a selling mood. Meanwhile, European stocks were sliding, with French and German benchmarks losing at least 1.2% each.
Priceline sank 7.8 percent as it projected third-quarter earnings below Wall Street analyst expectations.
Across the continent, healthcare stocks outperformed after Novo Nordisk A/S, a Danish pharmaceutical company, reported second-quarter operating profit of 13.4 billion kroner versus estimates of 12.7 billion.
Strong results from Scout24 and Novo Nordisk lifted those shares, but the pan-European STOXX 600 extended early losses to fall 0.7%.
In the next part, we'll discuss the S&P 500's top performers on August 8.
The technology sector .SPLRCT was the S&P's biggest drag with a 2.2 percent drop.
Health care equipment and services company Henry Schein declined amid a broader slide by health care stocks. Brent crude, used to price worldwide oils, gained 56 cents to $52.70 in London.
In other energy futures trading, wholesale gasoline dipped 1 cent to $1.62 a gallon.
Palladium climbed 1.1 per cent to $900.85 per ounce.
Banks also fell 2 percent, putting the index on track for its worst week in nine months.
Despite the rebound, gold was still in demand, rising US$3.10 to US$1,293.20 an ounce. Euro zone blue chips slipped 1.1pc.
Markets overseas were mixed Tuesday.
Nasdaq 100 e-minis were down 40.25 points, or 0.68 percent, on volume of 29,918 contracts. Discovery Communications fell 70 cents, or 2.9 percent, to $23.60.