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Power Play: Reaching a bottom in oil

A gas flare is seen at an oil well near Williston, North Dakota.
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A gas flare is seen at an oil well near Williston, North Dakota.

Oil has rallied 11 percent since hitting a low of about $38 a barrel in August.

Benjamin Pace, chief investment officer and partner at HPM Partners, tells CNBC's "Power Lunch" on Friday we may be seeing a bottom.

"Oil prices may have finally found a floor, after trading below $40 in the recent selloff of risk-based assets," Pace said.

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But a floor does not mean crude prices will move significantly higher from here.

"While anecdotal evidence exists of production declining in certain North American basins, lower prices have yet to create a meaningful rise in demand," Pace said.

He also does not anticipate a big move in gold prices.

"Gold has exhibited some safe haven attributes in the recent volatile markets. With little sign of inflation and U.S. monetary tightening on the horizon, it is difficult to build a case for higher prices," Pace said.

Gold, WTI and Brent crude are lower during trading.