Yesterday was another tough day across the ASX, with Australia's benchmark now down more than 9% in March.
Two ASX gold shares that were hit particularly hard were Catalyst Metals Ltd (ASX: CYL) and Alkane Resources Ltd (ASX: ALK).
These gold shares both fell roughly 14%.
This was despite no price-sensitive news from the companies.
Image source: Getty Images
Why are gold shares falling?
When conflict began in Iran, many experts tipped safe-haven assets like gold to continue to rise.
However, many gold shares have now heavily fallen in recent weeks, as the bull run of 2025 appears to be officially over.
This fall has been influenced by a combination of factors.
Firstly, the global gold price has fallen from record highs.
At the same time, investors are moving to other opportunities, with many gold valuations now appearing inflated.
Some of this movement has likely been towards energy stocks.
RBA cash rate hikes have also created headwinds for gold stocks, which usually perform better in a low-rate environment.
Have Catalyst Metals or Alkane Resources fallen too far?
After such a massive crash yesterday, investors may be wondering if there is any upside for these gold shares.
Of these two, it seems Catalyst Metals falls into that category.
Recent targets from brokers indicate it has plenty of upside, particularly after yesterday's 14% dip.
Recently, the company has been growing its resource base and production capacity, establishing itself as a rising mid-tier gold producer.
The company is engaged in the mineral exploration, evaluation, and production of gold across several states.
Recently, the team at Morgans placed a buy rating on Catalyst and a price target of $15.24.
From yesterday's closing price of $5.63, that indicates an estimated upside of roughly 170%.
Similarly, 6 analysts forecasts via TradingView have an average one-year price target of $14.34.
This indicates an approximate upside of 154% across the next 12 months.
Less upside for Alkane Resources
Meanwhile, forecasts are much more varied for Alkane Resources.
The company owns and operates Tomingley Gold Operations, an open-pit and underground gold mining development near Dubbo in central west New South Wales.
Based on 7 analyst ratings via TradingView, there is an average one-year price target ranging from $0.85 to $2.50.
The lower end of this range would indicate a further fall to come of more than 35%.
Meanwhile, the high end of these projections would be a healthy upside of 80%.
