Following Donald Trump’s surprise election victory the gold price spiked over $60 per ounce before falling back. The gold price had surged over 5% to $1,337.40 per ounce as it became clear Donald Trump had beaten Hilary Clinton in the race for the presidency.

Japanese equity markets fell 5.4%, however, the expected equity selloff failed to materialize in Europe and North America. Instead traders took the opportunity to re-balance their portfolios with money shifting from bonds to equities. Worryingly for Trump, traders had little appetite for U.S debt as yields rose on yesterday's $23 bn treasury auction.

Managed money expects the Trump administration to ramp up deficit spending, which is expected to add upward pressure on yields as investors demand greater compensation for lending money to a country with increased borrowing needs.

Trump's victory throws into question the assumption that the Fed will increase interest rates and speculation is building that Fed Chair Janet Yellen may resign, after Trump openly accused her of keeping rates artificially low to help boost the Democratic challenge for the White House.