Investing.com - Gold prices struggled near a two-week low in European trade on Monday, as investors unwound safe-haven trades in the wake of a failed military coup in Turkey.
The Turkish government said on Sunday it was in full control of the country and economy after thwarting an apparent military coup to topple President Tayyip Erdogan late on Friday.
The government widened a crackdown on suspected supporters of the failed coup over the weekend, taking the number of people rounded up in the armed forces and judiciary to 6,000.
Gold initially turned higher in post-settlement trade on Friday as news of the coup attempt spooked investors.
Gold for August delivery on the Comex division of the New York Mercantile Exchange dipped 50 cents, or 0.04%, to trade at $1,326.80 a troy ounce by 06:52GMT, or 2:52AM ET.
Prices of the yellow metal fell to a two-week low of $1,320.40 last Wednesday as uncertainty around the implications of Britain's Brexit vote eased with the formation of a new government.
Despite recent losses, gold is up nearly 25% so far this year, drawing support from fading expectations of a Federal Reserve rate hike and as speculation mounted that central banks around the world will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
In the week ahead, market players will be focusing on the outcome of Thursday’s European Central Bank meeting to see if policymakers will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Also on the Comex, silver futures for September delivery shed 20.0 cents, or 0.99%, to trade at $19.96 a troy ounce during morning hours in London, while copper futures slumped 2.0 cents, or 0.92%, to $2.213 a pound.