There is none like unto thee among the gods, O Lord; Neither [are there any works] like unto thy works. (ASV)
Note the reference to a plurality of gods: the Hebrews originally believed in the existence of many gods. For more on this topic, see the Deuteronomy 32:8 section.
The reference to gods does not imply actual belief in their existence (in other words a henotheistic religion, or a monolatry), but is a parody of other gods. This is exemplified by 2 Kings 19.18: "They have thrown their gods into the fire and destroyed them, for they were not gods but only wood and stone, fashioned by men's hands." In essense, Psalm 86 talks of the other 'gods' in the same sense, without the second phrase which explains that it doesn't really consider other nations' idols as actual having actual divinity.
Edit this section to note miscellaneous facts.