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The gonad is the organ that makes gametes. Gametes are haploid germ cells. For example, sperm and egg cells are gametes.
In vernacular use, gonads is slang for testicles. The usage of such is similar to "balls."
Gonads start developing as a common anlage, and only later are differentiated to male or female sex organs. The SRY gene, located on the Y chromosome and encoding the testis determining factor, decides the direction of this differentiation.