Platinum gained 0.7 percent to $973.40 per ounce after hitting its highest since April 21 in the previous session. The Korean won fell against the USA dollar.
North Korea said on Wednesday it is considering plans for a missile strike on the U.S. Pacific territory of Guam, just hours after Trump told the North that any threat to the United States would be met with "fire and fury". Tokyo's Nikkei 225 tumbled 1.3 percent to 19,738.71 while Seoul's Kospi fell 1.1 percent to 2,368.39.
Top automaker Hyundai Motor was up 1.39 percent to 146,000 won, and top steelmaker POSCO advanced 0.59 percent to 339,500 won.
Financial markets have tended to quickly shake off North Korea's periodic sabre-rattling in the past, dismissing it as bluster, but tensions have lingered this year amid signs that it is making progress in its ballistic missile programme and on Trump's growing frustration with Pyongyang.
"This in turn suggests that at least for the balance of this week, we likely should be long gold as the heated rhetoric could raise the odds of military action".
"The market's dent only lasted for a week in April when tension rose between them after North Korea launched a missile". Wall Street was poised for further losses at the opening bell, with Dow futures and the broader S&P 500 futures down 0.3 percent. The dollar notched a two-month trough on the safe-haven Japanese yen and was last down 0.3 percent at 109.99. The dollar weakened against the yen, which is often sought in times of geopolitical tension.
The dollar index, which tracks the greenback against six rival currencies, was up 0.07 percent to 93.717, after rising as high as 93.888 earlier in the session.
The franc was not the only beneficiary to the risk-off sentiment sweeping markets. The dollar index was moderately down ahead of European trading. "It seems the U.S.is one step closer to engaging in military conflict with North Korea".
"Obviously we are looking at the increased tensions between the USA and North Korea", said Brad Bechtel, managing director FX at Jefferies in NY.
On Tuesday, stronger-than-expected U.S.jobs data from the Labor Department weighed on gold, dragging prices to the lowest since July 26 at $1,251.01 an ounce. Brent crude, used to price global oils, gained 40 cents to $52.54 in London.
US crude shed 20 cents to $48.97 a barrel, while Brent crude fell 26 cents to $51.88 a barrel.