Playing just his second match since his Wimbledon triumph, Murray surrendered in less than 90 minutes to the Latvian world number 38, who produced some breathtaking shots on the Montreal hardcourt.
The loss leaves Briton Murray with only the Cincinnati Masters to fine-tune his game before the defence of his U.S. Open title, having enjoyed a long lay-off in the wake of his second grand slam crown.
"The goal is to try and peak at the US Open. But to do that you need to make sure you prepare yourself well and obviously I would have liked to have done better here," Murray told reporters.
 Gulbis will now face Canadian Milos Raonic in the quarter-finals.  Rafa Nadal, also back in action for the first time since Wimbledon, was given a tough workout by Poland's Jerzy Janowicz but survived to win 7-6 6-4.
Janowicz served for the set and led 3-0 in the second but was unable to capitalize on his chances.


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