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Markets still set for more volatility despite placid trading

Don't breathe a sigh of relief just yet.

Risk-sensitive asset markets appear to have stabilized, but some investors see potential trouble in store for earnings and oil in the weeks ahead.

The unfolding scenario may help boost safe-haven assets like gold, which closed Monday's trading session down more than one percent near $1,241 an ounce. Yet one portfolio manager it's found a bottom.

"It looks to me that gold has bottomed from a four year decline," John Hathaway, Tocqueville Gold Fund senior portfolio manager, told CNBC's "Power Lunch," before adding that it should be "headed higher."

However, Hathaway considers the market is overpriced, believes that earnings are "headed south" and the market is above its long term price to earnings ratio.

In contrast, Paul Christopher, head global market strategist at Wells Fargo Investment Institute, contended on Monday that earnings will be turning around, and the economic weakness associated with oil will pivot.

"We think prices not only will stabilize in oil, but will actually move a little bit higher from here," he said.

Chatter of a possible production freeze from OPEC and non-OPEC oil producers influenced an oil rally last week. Still, market watchers remain skeptical that produciton control plans will materialize.

John Kilduff told CNBC on Friday that oil will flirt with the $20 range, and may even touch $18 a barrel. U.S. oil settled down 3.43 percent at $37.18 a barrel, after briefly dipping below $37 earlier Monday.

While Christopher has not discarded stock volatility altogether, the strategist said on Monday that his firm sees growth in the economy and considers there are opportunities to buy the dip.

"We do expect some more volatility," he said. "We still like those sectors that are most leveraged to the economy, including consumer discretionary, info tech and industrials."

—CNBC's Evelyn Cheng contributed to this report.