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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: basho who wrote (69745)	9/13/2006 8:53:54 PM
From: bart13	Read Replies (1) \| Respond to of 110194

Bart, I think you'll find that those changes in contango are primarily due to two factors: 1) As the gold price changes, the forward price differentials will also change as the relevant interest rates are in effect applied to an altering principal.That's why -- when adjusted as you've done -- they'll appear to track gold price movements. 2) Changes in interest rates (for both the dollar and gold) will also of course have an effect, albeit generally a much smaller one. Of course they track partially due to interest rates as well as expectations and bunches of other stuff too as you noted. The chart is just a handy and accurate and simple way for me to tracking sentiment and selling and buying "pressures" etc. Its been quite a helpful trading tool. Sorry it wasn't useful and illustrative for you.