Hedge funds sharply increased their bullish positions in gold to the highest level since April, as persistent geopolitical and trade tensions continued to drive demand for the safe-haven asset, according top a report by Bloomberg.

The reports cites US government data released Friday as showing that money managers raised their net-long positions in gold futures and options by 19% in the week ending 22 July, bringing total contracts to 170,868 – the strongest positioning in 16 weeks.

Gold has climbed 27% year-to-date, buoyed not only by safe-haven flows but also by robust central bank buying, which has provided an additional layer of support amid heightened market volatility.

While the breakthrough in trade negotiations with the EU could temper some of the haven demand, many hedge funds appear to be maintaining gold exposure as a hedge against persistent uncertainty in the macroeconomic and geopolitical landscape.