Hedge funds have significantly increased their bullish positions on the US dollar, with leveraged funds' long bets rising to approximately 210,000 contracts, the highest level in six years. This surge represents a 400% increase in net long positioning over the past three months, contrasting with a net short position recorded in mid-September. The US dollar index has also seen a notable rise, increasing over 9% since mid-September and trading at its highest level since November 2022. According to Bank of America, the dollar is currently considered the most overvalued in history, by about 23%. The Dollar's Daily Sentiment Index has surged to the top 3% of all historic readings, indicating potential topping patterns for the dollar, while gold has historically gained an average of 24% over the subsequent year when the dollar has peaked.