Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Bullion has fallen six days in a row and is set for a weekly loss of more than 4%.
The overhaul of Brazil’s 46-year-old mining law will be unveiled on Tuesday as President Dilma Rousseff looks to strike a delicate balance between control over the country’s vast natural resources and appeasement of international investors who find the president’s approach to business “heavy handed,” reported Jeb Blount for Reuters Monday.
Industry slowdown may turn out to have been a moderating factor in the final version of the bill, as Rousseff faces growing pressure from the international business community to minimize regulations and restrictions on miners.
The new law is expected to double mining royalties to 4%.
The government is expected to introduce a new regulator of mining sector affairs.
Rousseff faces internal pressure as well. Recent protests, which began in Sao Paulo over an increase in transportation fares, have spread to many cities throughout the country and have widened to include disapproval of the upcoming World Cup and Olympics. Protesters claim that the hundreds of billions of dollars required for the major international events would be better spent on social services like health care and education.
