The ASX’s gold stocks were hammered on Thursday, after the gold price hit a three-week low.

Spot gold fell 1.1% to US$1,317.96 an ounce overnight, but had fallen as low as US$1,310.56 an ounce – the lowest price since June 28.

It’s should come as no surprise then that gold stocks have been hammered – particularly with the outlook looking increasingly cloudy. These 10 stocks were smashed down today, and more falls could be on the way.

Company Fall
Kingsrose Mining Limited (ASX: KRM) -10.0%
Doray Minerals Limited (ASX: DRM) -9.2%
Saracen Mineral Holdings Limited (ASX: SAR) -9.0%
St Barbara Ltd (ASX: SBM) -8.9%
Northern Star Resources Ltd (ASX: NST) -7.9%
Ramelius Resources Limited (ASX: RMS) -6.4%
Silver Lake Resources Limited (ASX: SLR) -6.4%
Teranga Gold Corp (CDI) (ASX: TGZ) -6.3%
AngloGold Ashanti Limited (CHESS) (ASX: AGG) -6.3%
Troy Resources Ltd (ASX: TRY) -6.3%
Perseus Mining Limited (ASX: PRU) -6.1%

Source: Google Finance

The problem is that equity markets are soaring, which is not a good sign for gold. Investors are piling into stocks and out of low-yielding or no return assets like bonds and gold.

Some market commentators are forecasting a gold price of around US$1,100 an ounce and even lower than the 2015 low of US$1,046 an ounce.

Whilst that is certainly bad news for the gold miners – most will still be generating plenty of cash thanks to the Australian dollar exchange rate versus the US dollar. The Australian dollar is currently buying 74.9 US cents – which puts the gold price at A$1,749 an ounce.

Most ASX-listed gold miners have all in cash costs of under A$1,100 an ounce.

Foolish takeaway

After enjoying a stellar run up earlier this year, gold miners and their shareholders could see their share prices reverse course and eliminate much of the gains so far this year.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.