Precious metals slipped and then tumbled on Monday as the U.S. dollar showed strength against other world currencies and oil plummeted 9.4 percent. New York silver, gold and platinum futures fell 8.3 percent, 5.2 percent and 8.2 percent respectively.
January crude-oil plunged $5.15 to close to $49.28 a barrel. The average price for unleaded gasoline declined a half cent to $1.82 a gallon, according to AAA.
March silver declined 85 cents to close to 9.38 an ounce.
January platinum fell $72.40 to settle at $809.90 an ounce.
Gold for February lost $42.20 to close to $776.80 an ounce.
Gold fell "on sharply lower oil prices and the dollar remaining firm after strong gains at the end of last week," said Mark O’Byrne, executive director at Gold and Silver Investments Ltd.
"Renewed uncertainty and weakness in stock markets could result in short-term weakness in gold, but gold [should] continue to see a flight to safety in the medium and long term," he said in a morning note.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. When prices are falling and economic activities are shrinking, gold prices tend to move lower.