Gold experienced its biggest fall in more than a week after the US dollar rebounded, eroding the appeal of the precious metal as an alternative asset.
The major miners tumbled.
BHP Billiton declined 70 cents, or 1.76 per cent, to $39.03 and Rio Tinto fell $1.27, or 1.9 per cent, to $65.69.
Oil prices also fell sharply.
New York's main contract, light sweet crude for delivery in December, dived $US1.82 to $US78.68 a barrel, closing for the first time below 80 dollars since nearly a week ago.
Local oil stocks lost ground with Oil Search four cents lower at $6.06, Santos down six cents at $15.38 and Woodside Petroleum 38 cents weaker at $50.47.
In the US overnight the strengthening US dollar and worries about an overheated market lead to further falls on Wall Street.
US stocks have now been down for four of the past five days.
The Dow Jones Industrial Average closed down 104.22 points, or 1.05 per cent, at 9867.96.
Oil briefly above $80 as earnings beat forecastsShare market lower at noon
