The US dollar rose on Tuesday, to extend its gains for the second straight day, near touching its 2-week high, as investors continued to focus on high-yield currencies, ahead of key US data releases on inflation levels for December.

The dollar index rose more than 0.1% to 97.47 points, after it opened at 97.36, and hit a day low of 97.35.

The greenback gained less than 0.1% yesterday, to mark its fourth daily gain in the past 5 days, on positive developments on the US-China trade file.

The US dollar rose to 2-week high of 97.58 on Friday, on improved risk-appetite, as concerns about the geopolitical tensions in the Middle East receded, and the US and China getting near to the signing of their initial trade pact.

A Chinese trade delegation headed by Vice Premier Liu He have arrived in Washington today, to sign the phase-one trade deal on Wednesday at the White House with President Donald Trump's administration.

The US Treasury Department on Monday removed its designation of China as a currency manipulator, in the latest positive measures.

Investors are anticipating the release of important US data today, on the US consumer prices index.

The US CPI reading for December will be released at 13:30 GMT, with forecasts for the annual reading to rise by 2.3% vs. 2.1% in November, and the monthly reading to rise by 0.2% vs. 0.3%.

US stocks fell in early trading today, as focus shifted to the signing of the initial trade pact between the US and China, and the quarterly earning reports season kicking of for Q4 2019.

The signing of the phase-one trade deal between the US and China tomorrow at the White House,  in the presence of the Chinese Vice Premier and US President Donald Trump.

US data revealed today that the CPI fell by 0.2% last month, which was widely expected.

The quarterly earning reports season started today, and as usual, the American banks kicked off the reports, with JPMorgan Chase, Wells Fargo and Citigroup.

Dow Jones rose by less than 0.1% or 10 points to 28,918 as of 15:08 GMT, while Nasdaq fell by 0.2% or 20 points to 9,254,  and S&P 500 fell by 0.3% or 9 points to 3,279.

Oil prices continued to rise as the US market opened on Tuesday, rising by more than 1%, in recovery attempts from the 6-week low hit earlier in the Asian trade, to head for the first daily gain in the last 7 days, after China's oil imports rose to a new record in 2019, in addition to Saudi Energy Minister upbeat remarks, and the US and China signing of the long-awaited trade deal.

West Texas Intermediate Crude (WTI) rose by 1.0% to $58.68 a barrel, after opening at $58.01, with a session-low of $57.76 (lowest since Dec. 6), and Brent rose by 1.1% to $65.00, after opening at $64.20, with a session-low of $63.94  (lowest since Dec. 12).

WTI closed lower by 1.9% on Tuesday, and Brent crude futures fell by 1.25%, their sixth daily loss, and the longest losing streak since Sept, as market concerns eased about the geopolitical tensions between the US and Iran.

China's General Administration of Customs showed that imports of crude oil rose by 10% during 2019, to record a new record for the 17th year, as demand from the new giant refineries increased, making China the world's largest oil importer.

Saudi Energy Minister Prince Abdulaziz bin Salman said that his country will work to balance the oil market, amid the escalating US-Iran tensions, to sustain prices and increase in demand.

Markets will focus on the signing of the phase-one trade deal between the US and China tomorrow at the White House, ending the more than 18 months old trade war, which has weighed down on the global economy and oil demand.

The American Petroleum Institute (API) will release the preliminary data on inventories and production levels in its weekly report later today, with forecasts for inventories to drop, and the US Energy Information Administration (EIA) will release the official data tomorrow.

Gold prices fell during the European session on Tuesday, to deepen losses for the third straight day to a 2-week low, on slow safe-haven demand, and a rise in the US dollar against a basket of major currencies.

Gold prices fell by 0.8% to $1,535.88 (the lowest since Jan. 3), after opening at $1,548.18, and hit a day high of $1,548.87.

The yellow metal closed lower by 0.9% yesterday, to post its third daily loss in the four days, on improved investor risk-appetite.

Gold prices are facing pressure from slow safe-haven demand, and improved risk-appetite, as risks that pushed gold prices 7-year highs receded.

These risks were the heightened geopolitical tensions in the Middle East between the US and Iran after the killing of the Iranian General Qassem Soleimani in a US airstrike.

Market sentiment also got a boost as the US and China are going to sign the phase-one trade deal on Wednesday in Washington, DC.

The dollar index rose today by 0.1%, to extend its gains for the second straight day, reflecting a strong performance against a basket of major currencies.

The greenback's rally comes as demand surged on higher-yielding currencies, ahead of key US data releases on inflation levels for December.

Gold holdings at the SPDR Gold Trust, remained unchanged yesterday, with a total of 874.52 metric tonnes (lowest since Aug. 27).