Gold Backwardation Misinformation

Dan Norcini says gold backwardation has not occurred, although negative GOFO rates do exist.  The reason why backwardation may appear to exist is because front month futures contracts are more liquid, so real-time bids and offers are more indicative of the existence of contango or backwardation than closing prices of futures contracts in more distant months.

http://traderdannorcini.blogspot.com.au/2013/07/gold-backwardation-misinformation.html