Today it's not backwardation but rather:
What is causing the periodicity in the cost of rolling gold futures?
Gold
Current Annualized Cost
0.61%
Annualized Cost 1 Week Previous
0.63%
Historical 07/12 5YR Annualized Roll
0.78%
Contract Months:
Feb Apr Jun Aug Oct Dec
0.61%
Annualized Cost 1 Week Previous
0.63%
Historical 07/12 5YR Annualized Roll
0.78%
Contract Months:
Feb Apr Jun Aug Oct Dec
CONTANGO WATCH: Gold narrowed ever so slightly this week.
ROLL COSTS: It costs investors 0.61 percent annualized to roll front-month gold contracts, down from a cost of 0.63 percent.
The futures briefly went into backwardation last week, at least between the front and 2nd month, and with the annualized roll cost under 1% it could get there again, without much buying/selling.
The thing I can't figure out is why the 1/10th percent roll cost change each month?
