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

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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.