The Dow Jones Industrial Average rose 14.31 points, or 0.07 per cent, to end at 21,858.32, the S&P 500 gained 3.11 points, or 0.13 per cent, to 2,441.32 and the Nasdaq Composite added 39.68 points, or 0.64 per cent, to 6,256.56. Gold miners bucked the 1.3 per cent fall for Australia's benchmark index. Japan's Nikkei 225 Index edged down by 0.1%, while Hong Kong's Hang Seng Index tumbled by 1.1%. That lifted the year-on-year increase in the CPI to 1.7% from 1.6% in June.
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. Germany's DAX was flat, while France's CAC 40 fell 1.1 percent.
CURRENCIES: The dollar slipped to 109.04 yen from 109.26 late Thursday.
The S&P 500 index had its biggest one-day drop in nearly three months on Thursday as investors fled riskier assets, with technology stocks leading the charge, in response to an increasingly aggressive exchange of threats between the United States and North Korea. Like gold silver has also seen a rise, reaching a high of $17.24, before finishing 1.1% up at $17.08.
Mining heavyweights BHP Billiton and Rio Tinto retreated 2-3%, while gold miners Evolution and Newcrest rose about 2% each.
Physical demand of has also been lower due to the levy of a three per cent goods and services tax (GST), in addition to 10 per cent import duty. has become costlier with GST, the overall levy now higher by 0.75 per cent. The the price of gold bullion has continued to climb, but less important than in the past two days.
A report released by the Labor Department showed a modest uptick in consumer prices in the USA in the month of July.More news: Massive quake strikes sending tremors through Indonesian island
More news: Gold price climbs - Newspaper
More news: Stocks drop, led by technology companies
The primary indicator of the week, consumer prices have slightly advanced in the month of July in the United States, but less than expected, according to figures released Friday by the ministry of Labour.
Despite its recent weakening, the New Zealand dollar is still up more than 5 per cent this year, setting a 26-month high of $0.7557 in July. Core inflation that excludes volatile food and energy items grew at a pace of 0.1% m/m, the same as in June but below the forecasted 0.2%.
Minneapolis Fed President Neel Kashkari is scheduled to take part in a moderated audience Q&A session at the Independent Community Bankers of Minnesota Annual Convention in Bloomington, Minnesota, at 11:30 am ET.
BAD LOOK: Investor concerns about slowing growth in Nvidia's data center business weighed on the company's shares, even though the maker of graphics chips posted earnings that beat expectations.
Shares in several other big media companies also declined.
Fawad Razaqzada, technical analyst at FOREX.com, said geopolitics will continue to dominate investor sentiment over the short-term.
In overseas trading, stock markets across the Asia-Pacific region saw continued weakness during trading on Friday.