2 ASX 200 gold shares going gangbusters (with more to come)

Celeste analysts back a pair of stocks that could outperform while the world is crumbling around it.

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Believe it or not, there are some ASX shares that shoot upwards when volatility strikes the rest of the market.

As a traditionally "safe haven" asset, companies involved in producing or investing in gold tend to do well when people get anxious.

The last few weeks have seen some hairy moments in the world of finance, with bank failures in the US flowing into the disappearance of Credit Suisse over in Europe.

The team at Celeste Funds Management, in a memo to clients, observed that the precious metal once again flourished last month during upsetting times.

"Global financial sector instability saw the AUD gold price rally to record highs, resulting in domestic miners Silver Lake Resources Ltd (ASX: SLR) and Gold Road Resources Ltd (ASX: GOR) rising 16.4% and 16.0% respectively."

miniature rocket breaking out of golden egg representing rocketing share price

Image source: Getty Images

'Strong upside potential'

Despite the March surge, the celeste analysts feel like there is more to squeeze out of both S&P/ASX 200 Index (ASX: XJO) gold miners.

"Our focus remains on production growth out of Silver Lake's Deflector asset as well as the operational turnaround at the recently acquired Sugar Zone project," read the memo.

"Gold Road's prospects are promising with improving grade at Gruyere and the investment in De Grey Mining Limited (ASX: DEG) offering strong upside potential."

Finance expert John-Louis Judges last week picked Silver Lake as a hot ASX 200 stock he would buy right now.

"The company's healthy cash and bullion position of $253 million provides a strong financial foundation for future growth and investment," Judges said on The Bull.

"The potential for a higher value of gold in the near term makes Silver Lake Resources a good investment opportunity."

Argonaut Securities associate dealer Harrison Massey also shared Judges and the Celeste team's bullishness for Silver Lake.

"The company is poised to take advantage of what we expect will be a stronger gold price in the near term."

The Silver Lake stock price is up 3.78% year to date, while Gold Road is 2% higher.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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