Extremely low U.S. Dollar exposure

The Hedge Fund Exposure has now fallen to a multi-year low. Hedge Funds are currently under-exposed to the U.S. Dollar

Impact on USD:

When this happened in the past, the U.S. Dollar saw gains over the next year on all time frames. This is to be expected since the dollar may see some buying pressure come in as hedge funds add exposure.

Impact on Gold:

However, current low levels of hedge fund exposure to dollar in the past was a bearish sign for gold over the next year on every time frame.