Russia will have to sell gold if it has to support its financial system, said Brian Jacobsen, senior investment strategist, multi-asset solutions at Allspring Global Investments, on Monday, adding that upside for gold might be capped if Russia may look to liquidate gold.

In an interview to CNBC-TV18, Jacobsen said, “We know that Russia has effectively been raising; they have about 2000 tonne of gold, so they replaced a lot of the treasury securities that they used to have with gold and if they need to support their financial system, they will probably going to have to start selling some of that gold.”

“I am not sure how much more upside we will see with gold if there is going to be some sort of forced selling by the Russian central bank or by Russians in general in order to raise hard currencies,” he said.

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According to him, it would be a buying opportunity if S&P 500 slips to 3,900-4,000. “We knew that we will have a lot more volatility and so it’s about having a plan and executing on it and the way that we look at it is that the S&P 500, on a bad day, get down to 4,000 maybe 3,900, but we would do that as a tremendous buying opportunity,” said Jacobsen.

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For the entire interview, watch the accompanying video

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