The euro, which hit its highest since the start of 2015 on August 2, dipped 0.1 percent to $1.1761 in morning trade in Europe.
SIMMERING TENSIONS: North Korea revealed on Thursday a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.
"I will tell you this, North Korea better get their act together or they're going to be in trouble like few nations ever have been in trouble in this world", Trump said.
Gartman's comments follow Bridgewater Associates founder Ray Dalio's gold recommendation: "We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit", Dalio wrote in a LinkedIn blog post.
USA gold futures for December delivery rose 0.2 percent to $1,291.80 per ounce. The consumer discretionary index was one of its biggest losers with a 0.47 percent drop.
In a note sent to clients late on Thursday, the USA bank predicted the single currency would rise to $1.25 in the first quarter of next year and reach parity with sterling for the first time. Alliance Data Systems fell $6.28, or 2.7 percent, to $225.64.
The Japanese yen strengthened by 0.5% to about 109.70 per dollar.
ASIA'S DAY: Earlier, Asia bore the brunt of the mounting geopolitical uncertainty, with South Korea's Kospi index closing down 1.7 percent at 2,319.71 and Hong Kong's Hang Seng ending 2 percent lower at 26,883.51.
It was 0.2 percent lower at 1.1310 francs, compared with highs of 1.1537 francs hit a week ago.
Stock movers: Shares of Old Mutual PLC (OML.LN) fell 2.5% even after the company raised its dividend 32% (http://www.marketwatch.com/story/old-mutual-lifts-dividend-32-after-earnings-rise-2017-08-11).
Disappointing US inflation and jobs data have not helped the dollar.
Prices rose by just 0.1% last month, below expectations, with the annual inflation rate up to 1.7% from 1.6%. That "looks high enough to be consistent with a 5 percent-plus pace for real GDP growth", said Jim O'Sullivan of High Frequency Economics in a report.
Crude oil prices tumbled on the back of the selloff on Wall Street and lingering concerns over global oversupply.
USA crude rose 0.41 per cent to US$48.79 per barrel and Brent was last at US$52.01, up 0.21 per cent.