Gold falls to $1325 as failed Turkey coup dents safe-haven appeal

Gold added on to its recent declines and slipped further on Monday as investors continue to unwind their safe-haven bets in wake of a failed military coup in Turkey.

On Friday, the precious metal managed to rebound from 20-day SMA but still posted its first week of declines since May. Friday's recovery occurred despite of a stronger US Dollar, which gained traction after the release of upbeat economic releases. 

The yellow metal continues to face selling pressure on the first day of a fresh trading week and is currently hovering around 20-day SMA support near $1325. 

Upbeat US economic data coupled with mostly in-line with expected Chinese GDP print receded fears of a global economic slowdown and has been the key factor denting demand for traditional safe-haven. 

In absence of any major economic releases on Monday, Gold will continue to derive its moves from the prevalent investor sentiment surrounding riskier assets - like equities and commodities. 

Technical levels to watch

On a sustained break below $1325 support, the metal seems to head back towards post-Brexit corrective move support near $1305-1300 psychological mark. Failure to hold $1300 handle is likely to trigger extension of the commodity's near-term corrective move, dragging it immediately towards $1290 support ahead of 50-day SMA support near $1280 region.

On the flip side, rebound from current support level now seems to confront immediate resistance near $1340 level, above which the metal seems to immediately dart towards $1350 resistance before resuming its near-term bullish momentum. Above $1350 resistance, the commodity seems all set to retest an important resistance near $1365-70 region.