Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Gold spot price was down slightly on Thursday to $1,248 – a o.3% loss on Wednesday’s close – and trading volume waned as investors await US jobs data.
Investors see positive workforce data as a possible trigger for an end to the Fed’s quantitative easing which could drive the dollar up and the metal down.
Gold lost alongside the Euro after Mario Draghi, president of the European Central Bank, announced that interest rates will remain at record lows of 0.5%, Reuters reports. Draghi hinted that these rates might go even lower.
US markets were closed on Thursday but with jobs data coming out on Friday it is possible the precious metal will take a hit tomorrow, an analyst told Reuters.
Creative Commons image by: Liam Swinney
