gold calander spread

[martin brown]

i am currently looking at calander spreads for gold.

for example, buy the dec '06 contract & sell the oct '06 contact.

however looking at a few charts i am baffled.

futuresource shows that a daily spread chart is trending up since Dec '05 from $4 to now $6.5.

but looking at futuresource's 2 week 60min spread chart shows that the intraday range has been between $4.2 and $8.

now looking at an Interactive Brokers 1 week 60 min bar chart shows that the spread has not moved at at all from its $5.75-$6.25 range?

what am i missing here?

how could you possibly trade this particular calander spread?

http://www.futuresource.com/charts/charts.jsp?s=GCZ06-GCV06&o=&a=D&z=650x450&d=MEDIUM&b=CANDLE&st=

http://www.futuresource.com/charts/...V06&o=&a=V:60&z=650x450&d=MEDIUM&b=CANDLE&st=

 

[theEdge]

The time frames on those charts are different.

You can trade the spreads as exchanged traded strategies on the CBOT

 

[-oo0(GoldTrader)]

Simultaneous

Spreads have to be simultaneous trades. Both sales made at the same time. Your intraday ranges are not spread quotes. Try pit closes only for comparison.

It seems to me your gold spread is really only an interest rate spread. Anyone can buy the near and store it for so many months to sell the far. Carrying charges would be pretty much the same per month plus interest. So you are trading the expected changes in rates.