European CEOs Demand Urgent Action on Soaring Energy Prices as Gold Holds Above $5,050 Amid Fed Rate Uncertainty

Date: 12 Feb 2026 03:00 PM

Hundreds of European business leaders and CEOs have urgently called on EU authorities to take immediate action to reduce soaring energy prices, warning that persistently high costs—driven by elevated electricity rates compared to global competitors and Europe's unique carbon pricing system—are severely undermining industrial competitiveness and triggering an unprecedented outflow of investments. In a declaration presented at the Antwerp European Industry Summit, they described the next five years as the most challenging for European industry in decades, emphasizing that electricity prices must fall to pre-2021 levels of around €44 per MWh to halt the rapid structural loss of manufacturing capacity across sectors. Executives, including those from Heidelberg Materials and BASF, stressed the dire situation for chemicals and other industries, while European Commission President Ursula von der Leyen acknowledged the issue in her speech, noting that high gas prices are the main driver and that expanding renewables and nuclear power offers a promising path to lower costs.

Gold prices are holding just above the $5,050 mark, lingering near their daily low during the early European session on Thursday, though without strong follow-through selling. The precious metal faced pressure after Wednesday's stronger-than-expected US Nonfarm Payrolls report (130K jobs added versus 70K forecast), which reduced expectations for a March Federal Reserve rate cut and shifted bets toward the Fed keeping rates unchanged in the near term. Despite this, the USD has struggled to gain meaningful traction, as markets still anticipate two 25 bps rate cuts later in 2026, while concerns over threats to the Fed's independence provide ongoing support for gold. Comments from Fed officials like Cleveland's Beth Hammack and Kansas City's Jeffrey Schmid emphasized a balanced labor market and the need to avoid prolonged inflation, reinforcing a cautious stance on easing. With the upcoming US CPI data on Friday and weekly jobless claims on Thursday likely to influence Fed rate expectations, gold's supportive fundamentals continue to limit significant downside risks.

Myforexeye Research

Myforexeye streamlines client operations and maximizes client savings. Our experienced analysts excels in fundamental and technical analysis. With a strong focus on the currency market, our professionals provide risk advising services, expertly manage TPO transactions, and generate informative research reports