The rebound in USA stock appears to have calmed some of the fears that were weighing on the dollar, said Shahab Jalinoos, global head of FX strategy at Credit Suisse in NY.
The Dow Jones Industrial Average rose 11.02 points, or 0.05 percent, to 21,819.42, the S&P 500 lost 2.72 points, or 0.11 percent, to 2,441.52 and the Nasdaq Composite added 3.32 points, or 0.05 percent, to 6,286.34.
Gold prices edged lower early on Wednesday after hitting a more than nine-month peak in the previous session, as the dollar recovered from multi-year lows on easing tensions surrounding North Korea.
Benchmark 10-year Treasury yields US10YT=RR fell as low as 2.086 percent, before edging back up to 2.1292.
Geopolitical tensions can boost demand for safe-haven assets such as gold which is considered a good store of value during volatility in other markets.
Spot gold was up 0.6 percent at $1,317.47 per ounce, as of 0627 GMT, after earlier hitting $1,322.33, its highest since November 9. Other precious metals, including silver and platinum, also gained.
The pound was slightly higher against most other major currencies, buying $1.2927 compared with $1.2919 late Tuesday in NY.
Carry trades involve investors borrowing a low-yielding cheap currency like the yen to fund purchases of riskier and higher-yielding currencies. That turnaround came after what were seen as measured and balanced responses to the missile test from U.S. President Donald Trump and the rest of the global community, according to analysts.
MSCI's world index.MIWD00000PUS, which tracks shares in 46 countries, was down 0.29 percent, after earlier falling as much as 0.57 percent to a one-week low on heightened worries about North Korea. The US dollar slipped to the lowest since 2015.
Flooding from Tropical Storm Harvey has shut almost a fifth of USA oil-refining capacity, triggering worries about a gasoline supply crunch as the slow-moving tempest lumbers through the heart of America's petrochemicals industry.
USA gold futures for December delivery rose 0.6 percent to $1,323.00 per ounce.