Gold has risen almost 9 percent on the year, but Friday signaled its biggest pullback since April.
While Adrian Day, chairman and CEO of Adrian Day Asset Management, said the short term play could be risky, John Licata, chief investment strategist at Blue Phoenix, said it indicates a good buying opportunity. (See Licata's stock picks below)
"I think that inflation is starting to poke its head up, even if you look at gasoline prices and obviously where the price of crude is right now," Licata said.
"Inflation could be a nice factor for the price of gold in the second half of the year."
Blue Phoenix holds a $1,200 price target on gold for the rest of the year, Licata said.
Day agreed that the commodity will rise in the medium and long terms, but said the immediate term holds risk. As for oil, Day said $70 is a fair value in the current market, and he doesn't see prices rising significantly in the immediate future.
"I don't think we've got a lot of downside, and there's always potential risk on the upside," he said.
Licata said oil could very well continue to move higher, but that there will likely be a short-term pullback to within the $58-$62 range.
"I do think the service names could be good momentum plays, and refinery plays," he said. "I think you can't go wrong with either one."
Licata does not own shares of any of the recommended stocks. Disclosure information was not available for Day or his company.