Gold hits two-month low, but portfolio manager sees a rebound ahead

Gold has struggled to maintain its levels during the summer as the market has remained flat, but one portfolio manager has a way to play the yellow metal in today's market environment.

Chad Morganlander, portfolio manager at Stifel Nicolaus, encourages investors to look at the gold-tracking ETF (GLD).

"We believe that it will continue to go higher and for the short run," he said Wednesday on CNBC'S "Power Lunch."

GLD is up 23 percent year-to-date, rallying as gold surged throughout the year.

Morganlander remains bullish on gold overall, as he believes the metal is a "great hedge against market volatility as well as equity risk." Ironically, though gold is often considered a likely casualty of the Fed's rate hike, he says such a move would help the yellow metal.

"We believe that it will continue to go higher and for the short run," said Morganlander. "We do believe that gold will start to rally again after the Federal Reserve comes in and repositions for the next interest rate hike, which we're expecting at the end of the year."

Morganlander expects gold to have an annual return between 4 to 6 percent over the next five years.

Gold hit a two-month low during Wednesday trading.


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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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