Gold dropped more than 1 percent and silver slid 3 percent on Monday, triggering automatic sell orders in thin pre-holiday dealings after U.S. existing home sales fell to a six-month low, and as oil prices eased back toward $55 per barrel.
Spot gold was down 1.3 percent at $1,180.05 an ounce. It lost about 2 percent last week on a strong dollar and expectations of rising U.S. interest rates.
U.S. gold futures for delivery in February settled $16.20 lower at $1,179.80 an ounce. The largest open interest in January options was at $1,200 ahead of expiry on Tuesday, traders said.
U.S. home resales tumbled to a six-month low in November after two straight months of strong increases, underscoring the uneven nature of the housing market recovery.
"It was a slow drift down toward the (sell) stops. It was a little bit delayed," said a U.S. trader.
Sell-stops were triggered in spot gold around $1,192, the trader said.
Oil prices resumed their downward march on Monday, doubling back on the biggest one-day gain in over two years, after Saudi Arabia's powerful oil minister said OPEC would not cut production at any price.