Gold prices remain bid during the North American session as breaking news revealed Iran's attack on US bases in Qatar, in retaliation for the over-the-weekend attack on Iran's nuclear installations by the White House. Meanwhile, US economic data was overlooked mainly as geopolitical tensions in the Middle East intensified. At the time of writing, XAU/USD trades at $3,385, up 0.39%.

Macroeconomic data has been pushed aside as geopolitics grabs most headlines. Iran reported the launch of missiles at US bases in Qatar, Kuwait and Iraq, according to Al Arabiya, citing Israeli media. Alongside this, Iran retaliated, approving the closure of the Strait of Hormuz and launching missile strikes against Israel.

Meanwhile, Israel attacked Evin prison in northern Tehran, which, according to Reuters, "Israel called its most intense bombing yet of the Iranian capital a day after the United States joined the war."

Bullion prices printed another leg up, as Federal Reserve (Fed) Governor Michelle Bowman added to the doves' chorus, saying that she's open to reducing interest rates at the July Federal Open Market Committee (FOMC) meeting, if inflation pressures remained contained.

The US Dollar Index (DXY), which tracks the buck's performance against a basket of six currencies, drops 0.25% to 98.52. US Treasury bond yields are also on the back foot, a tailwind for Gold prices.

On the data front, S&P Global revealed that manufacturing activity expanded above estimates but has stalled for the last two months. In the services sector, businesses remain growing at a healthy pace, though June's print dipped compared to May figures.

The economic docket in the US will feature further Fed speakers, led by Fed Chair Jerome Powell's testimony at the US Congress on Tuesday. Traders would digest the latest Consumer Confidence figures, Durable Goods Orders, housing and jobs data, along with the release of the Fed's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index.

Source: Fxstreet