Gold turns neutral at $1328 amid risk-off mood

Having dropped to a 4-day low during early Asian session on Monday, Gold has managed to recover its lost ground and is now trading in neutral territory around $1328 level.

Reviving hopes of an eventual Fed rate-hike action at September 20-21 meeting boosted demand for the greenback and has been weighing on dollar-denominated commodities - including gold. 

However, the prevalent risk-off sentiment in equity markets drove investors to the perceived safe-haven assets and helped the precious metal to bounce off session low. 

With an empty economic calendar on Monday, risk-aversion might continue to underpin the yellow metal's safe-haven appeal while a increasing prospects of an imminent Fed rate-hike might cap any sharp appreciation, thus confining the metal within a trading band. 

Technical levels to watch

From current levels $1325 level remains immediate support to defend below which the metal immediately head towards $1320 horizontal support before eventually dropping to $1310 support area.

On the flip side, a follow through buying interest above $1330 immediate resistance is likely to boost the commodity towards $1335 resistance, which if cleared would pave way for a retest of the very important resistance near $1350 region.