Gold has been outperforming the S&P 500 in recent months, defying its traditional role as a hedge against market downturns.

This unusual behavior is attributed to bearish bets against a concentrated market, central bank actions, and increased interest from sovereign wealth funds and countries seeking alternative stores of value.

Despite its atypical performance, gold remains an attractive investment option due to its diverse appeal beyond traditional hedging purposes, making it a useful tool in investment portfolios.