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Analyst: Too soon to make a call on gold

The plunge in gold prices overnight has many worried about how to play the commodity in the short and long terms, but Todd Colvin, senior vice president at Ambrosino Brothers, urged investors to wait a bit longer.

"I think right now you wait and see," he said in an interview on CNBC's "Squawk on the Street" on Monday. "I don't think this is a panic time for anyone who is still long gold. You want to watch and see how this trades."

Colvin said that China's central bank announcing that it wasn't holding as much gold may have triggered the selloff that occurred on Sunday night into Monday morning. Gold prices plunged as much as 4 percent to their lowest in more than five years on Monday as sellers in top consumer China offloaded the metal.

Read MoreGold hits 5-year low under $1,100 on Chinese selling

"When you take your largest buyer of world commodities [China] and they decide they are either going to pull back or cease buying altogether, this is just the tip of the iceberg," he said, referring to lower commodity prices overall.

When asked whether this is a buying opportunity in gold, Colvin said that U.S. corporate bonds and stocks are a better bet.

"Let's face it, there are better buying opportunities out there," he said. "A lot of those looking for risk-averse trades are going to move out of gold and maybe into some less riskier trades in rates."

—Reuters contributed to this report.