"The decline has been caused by the uncertainty created by the north Korean crisis", said the manager Alan Skrainka, Cornerstone Wealth Management.
He said: "While the two monetary metals continue to trade mostly on real yield dynamics, some investors reacted to the escalating tension by buying these traditional safe-haven instruments". Northern Star Resources was up 3 per cent, while Evolution Mining rose 2 per cent, Newcrest Mining gained 2.3 per cent and Resolute Mining rose 2.1 per cent. Westgold Resources was the biggest gainer, rising 6.6 per cent.
The Dow Jones Industrial Average fell 94.55 points, or 0.43 per cent, to 21,954.15, the S&P 500 lost 19.51 points, or 0.79 per cent, to 2,454.51 and the Nasdaq Composite dropped 76.39 points, or 1.2 per cent, to 6,275.94.
Canada's main stock index posted its lowest close in five weeks on Friday, weighed by a move lower in financials and a fall in shares of auto parts maker Magna International Inc despite reporting better-than-forecast quarterly profit.
The dollar was further weighed on Friday by the soft USA inflation data.
FINANCIALS FALLING: Several financial sector companies also helped pull down the market.
"The market is trying to interpret the CPI data as somewhat positive because it is anticipating that the Fed will be on hold not only in September but also possibly in December", said Robert Pavlik, chief market strategist at Boston Private Wealth.
July's 0.1 percent increase in consumer prices suggests that the Federal Reserve may be less likely to raise interest rates next month. Australia's S&P/ASX 200 edged down almost 0.1 percent to 5,760.90, while South Korea's Kospi fell 0.5 percent to 2,357.84.
On Friday, the S&P 500 rose 3.11 points, or 0.1 percent, to 2,441.32. The Russell 2000 index of smaller-company stocks picked up 1 point, or 0.1%, to 1,373. Banks and retail chains were also among the big decliners. MetLife fell 75 cents, or 1.6 percent, to $47.56, while Charles Schwab slid 69 cents, or 1.6 percent, to $41.33.
In other energy futures trading, wholesale gasoline rose 1 cent to $1.61 a gallon, while heating oil was little changed at $1.63 a gallon.
On the economic front, data is expected to show that USA consumer prices likely rose in July after being unchanged the prior month.
The local currency was trading at 1,138.95 won against the USA dollar, down 3.75 won from the previous session's close.
Silver added 0.4% to $17.15 US per ounce after hitting $17.24, its highest since June 14, in the previous session.
The last time the S&P closed down more than 1 percent was May 17.