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Gold steadied near the highest level in more than four months amid signs that investors are turning more bullish on the precious metal.

Hedge fund managers increased their net-long gold positions to the highest in 16 weeks, data showed Friday. Bullion-backed exchange-traded funds have seen inflows in May, following three straight months of sales, according to data compiled by Bloomberg.

Gold capped three straight weeks of gains as investors weighed inflation risks and spikes in coronavirus cases in some countries. Market-based gauges of inflation expectations have declined of late, though concerns linger that the post-pandemic recovery could stoke price pressures and force a pullback in extraordinary central bank support.

Spot gold rose 0.1% to $1,883.89 an ounce by 8:15 a.m. in Singapore. Prices climbed to $1,890.13 last week, the highest since Jan. 8. Silver and palladium were steady, while platinum rose. The Bloomberg Dollar Spot Index was flat after rising 0.2% on Friday.

Meanwhile, investors were also weighing the extreme volatility in Bitcoin, which may have lent an added pillar of support to bullion. Former Treasury Secretary Lawrence Summers said cryptocurrencies could stay a feature of global markets as something akin to “digital gold,” even if their importance in economies will remain limited. Cryptocurrencies offered an alternative to gold for those seeking an asset “separate and apart from the day-to-day workings of governments,” he said.

©2021 Bloomberg L.P.