KITCO NEWS -"Despite a drop in late trading, gold prices managed to rally to seven-month highs Wednesday, trading near that key $1,300 level." The mining stocks, on the other hand, seem to be lagging a little behind. However, fund manager and U.S. global investors CEO Frank Holmes says he isn't concerned, calling some gold stocks 'great buys' at the moment. 'It is so easy for gold to hit $1,300 because the 2-year, 5-year and 10-year government bonds all have negative real interest rates,' he told Kitco News. Gold saw a late afternoon dip with August futures last at $1,287 an ounce, down $10.50 on the day.

 Watch More From TheStreet:

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.

If you liked this article you might like

Gold Prices Are Exploding But Can It Keep it Up ? Expert Weighs In

Gold Prices Are Exploding But Can It Keep it Up ? Expert Weighs In

Gold on Fire, Could See $1,400 Soon Says Expert

Gold on Fire, Could See $1,400 Soon Says Expert

Gold Is Acting 'Bullish' but It's Not a Bull Market Says Dennis Gartman

Gold Is Acting 'Bullish' but It's Not a Bull Market Says Dennis Gartman

Ignore the Noise, Gold Is in a Bull Run -- Expert

Ignore the Noise, Gold Is in a Bull Run -- Expert

Is Silver Due to Shine? This One Clue Says Yes

Is Silver Due to Shine? This One Clue Says Yes