The US dollar inched lower Monday, to erase its earlier gains, as investors eschewed safe havens such as the greenback and precious metals in favour of stocks.

Multiple news reports revealed that the US Treasury will lift its designation of China as a manipulator of its currency exchange rate, which is many experts saw as a positive move.

This comes amid widespread anticipation for the signing of the phase-one trade agreement between the US and China, which will be followed immediately by negotiations for the phase-two.

The US Department of Labor unveiled last week that the economy has added 145,000 new jobs in December, lower than forecasts of 162,000.

The dollar index held against a basket of major currencies at 97.3 points as of 19:19 GMT, and hit a day high of 97.5 and a low of 97.3.

Gold futures fell Monday, despite the US dollar slip against most currencies, as positive reports on the US-China trade talks weighed on the precious metal and spurred a risk-on move.

Multiple news reports revealed that the US Treasury will lift its designation that China manipulates its currency exchange rate against the US dollar..

This comes amid widespread anticipation for the signing of the phase-one trade agreement between the US and China, which will be followed immediately by negotiations for the phase-two.

The dollar index held against a basket of currencies at 97.3 points as of 20:08 GMT, and hit a high of 97.5 and a low of 97.3.

Gold February futures fell 0.6% to close at $1,550.6 an ounce (lowest close since January 2), after hitting a day high of $1,563.1 and a low of $1,547.

The Trump administration plans to lift its designation of China as a yuan manipulator, as China used to manipulate the exchange rate of the Yuan to gain competitive advantages in its exports at the expense of the US.

Multiple news agencies including, Bloomberg, reported that the decision will be ahead of the signing of the phase-one trade deal this week.

The US Treasury will lift its designation (taken last August) that China manipulates its currency exchange rate against the US dollar.

After this announcement, the offshore yuan rose against the US dollar to 6.883 yuan.

Wall Street also extended its gains after the news, as Nasdaq and S&P 500 jumped to all-time highs.

US stocks kicked off the week higher, lifted by widespread optimism ahead of the signing of the phase-one trade deal between the US and China.

President Donald Trump stated that signing of the phase-one trade agreement with China will take place on January 15, and negotiations for the phase-two will start immediately.

Trump added that he expected the delay of signing of the phase-two until after the next presidential elections in November.

Whilst, the US Chamber of Commerce sees that signing the phase-one deal does not mean ending the trade dispute between the US and China, but it is a step on the right path.

As for stocks, Dow Jones rose by 0.1% or 22 points to 28,845 as of 15:11 GMT, Nasdaq added 0.4% or 35 points to 9,214, and S&P 500 rose by 0.3% or 10 points to 3,275.