Structural transformations, electronic spectra, and ballistic transport in
pulled gold nanowires are investigated with ab initio simulations, and corr
elated with recent measurements. Strain-induced yield of an initial double
strand wire results first in formation of a bent chain which transforms upo
n further elongation to a linear atomic chain exhibiting dimerized atomic c
onfigurations. These structures are stabilized by directional local bonding
with spd hybridization. The conductance of the initial double-stranded con
tact is close to 2(2e(2)/h) = 2g(0), and it drops sharply to 1g(0) during t
he transformation to a single chain, exhibiting subsequently a similar to 1
g(0) plateau extending over an elongation well above typical Au-Au distance
s.