Gold rose more than 1 percent to top $1,190 an ounce as investors' appetite for risk-taking abated.
In midday New York trading, major US indexes were down. The Dow Jones Industrial Average was down 65.16 points, or 0.64 percent, at 10,089.27. The benchmark Standard & Poor's 500 Index was down 3.88 points, or 0.36 percent, at 1,067.37. The Nasdaq Composite Index was down 15.34 points, or 0.70 percent, at 2,182.89.
World stocks as measured by MSCI were down 0.2 percent and the Thomson Reuters global stock index was down 0.29 percent.
European stocks broke a week-long losing streak as mining stocks climbed along with metal prices. Spanish stocks such as Santander also rallied, helped by Spain's successful Treasury bill auction that eased worries over the country's ability to tap the debt market.
The FTSEurofirst 300 index of top European shares closed 0.04 percent higher at 1,006.64 points.
But Japan's benchmark Nikkei stock index shed 1.15 percent, reflecting investor concern about a U.S. slowdown.
In New York trading, the euro was down 0.25 percent at $1.2908 from a previous session close of $1.2940.
The dollar was higher against a basket of major trading-partner currencies, with the US Dollar Index up 0.29 percent at 82.751 from a previous session close of 82.513. Against the Japanese yen, the dollar was up 0.60 percent at 87.25 from a previous session close of 86.730.
Gold also gained on the day. Spot gold was bid at $1,190.95 an ounce at 1541 GMT against $1,180.35 late in New York on Monday, having earlier slipped as low as $1,175.35. US gold futures for August delivery rose $10.10 an ounce to $1,192.00.
Oil rose on Tuesday. US crude for August delivery rose 61 cents to $77.15 a barrel by 11:57 a.m. EDT (1557 GMT). Front-month ICE Brent crude for September delivery rose 46 cents to $76.08.
