The gold price spiked to its highest levels since 9th September following Janet Yellen’s decision not to raise interest rates. The gold price rose in tandem with stocks as the FTSE climbed over 6800 points as markets digested the news.

The gold price was also boosted by the Bank of Japan’s announcement to continue with their own money printing program. The Fed has now backed themselves into a corner with no easy escape. Despite all the rhetoric and the dubious jobs numbers the Fed must know the U.S economy is slowing and raising interest rates would only exacerbate the slowdown.

The Fed can’t continue this charade for ever. Main street is feeling the pain as living standards are squeezed and jobs lost. Against this backdrop the Fed can’t pretend everything is fine forever, eventually the markets will lose faith in the Fed's ability to manage asset markets.

Despite typical Fed speak, Yellen did take time to deny Donald Trump’s accusation the Fed keeping rates artificially low to help Hillary Clinton win November's election. If elected, Trump wants a full audit of the Fed within the 100 days of this presidency.