Gold, indices and Bitcoin rally as risk appetite returns with easing yields and oil - StoneX

9 Oct 2026 Markets went from risk-off to risk-on yesterday afternoon, and we have since kicked on with some follow-up buying of stocks, gold and silver, while the dollar has also shown signs of weakness. Risk appetite turned positive after bond yields and oil prices both retreated yesterday. But after the turbulence of recent sessions, it is too early to assume the pressure has disappeared completely. Still, it is an encouraging sign, nonetheless.

Gold s sharp recovery from recent lows suggests a low might be in place. Bitcoin and the DAX have also formed interesting price action. Looking ahead, we have some UoM sentiment data from the US while Canada releases its monthly jobs report. Next week, the focus will turn to US inflation and central bank speeches.

Could oil fall further? Oil has remained steady after coming sharply off its highs yesterday as traders unwound some of the geopolitical risk premium built into crude prices on fears of US strikes against Iran. Trump s post that he will not do that has reduced immediate concerns, although much will now depend on Tehran s response to Washington s proposal. A constructive response could see oil fall further as markets price in a lower risk of supply disruption, while a more hostile response would probably put a floor under prices.

Iranian Foreign Minister Araghchi said yesterday that Tehran was reviewing Washington s response and expected to reply within the next few days. The softer oil prices are also helping the broader risk mood, although falling bond yields are arguably just as important. European stocks climb after yesterday s drop in yields European stocks have opened firmly higher, partly catching up with Wall Street after US equities recovered much of their earlier losses late yesterday. That rebound came after European markets had already closed, leaving the region playing catch-up this morning.

More importantly, the sharp rise in borrowing costs seen earlier this week has eased. Higher yields have been one of the biggest sources of pressure on equities, particularly in Europe, where concerns over government finances, including in France, have added to unease over sovereign debt. There were also encouraging signals from the US Treasury market yesterday, as the 30-year bond auction attracted solid demand, suggesting investors remain prepared to buy long-dated government debt despite the recent sell-off. The benchmark 10-year yield had reached a fresh 24-year high, but both 10- and 30-year yields subsequently moved lower following the auction.

1%. That is certainly a positive sign, but I wouldn t get too carried away with the rebound just yet. The underlying concerns haven t gone away. Inflation remains a problem, oil prices are still elevated, and governments are facing increasingly expensive borrowing costs.

In other words, the relief we are seeing today is largely about a reduction in immediate pressure rather than a fundamental change in the market backdrop. For now, falling yields and a softer geopolitical risk premium are giving equity bulls some breathing room. The real test, however, will be whether they can hold onto those gains. With next week s US CPI report still ahead, markets may not have to wait long for the next catalyst.

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