Although the gold price has pulled back from its high, it is still at elevated levels compared to where it has been over the past decade.
This means that ASX gold stocks are continuing to generate strong cash margins and deliver bumper profits.
In light of this and recent weakness in the gold industry, now could be a good time to look for exposure to this side of the market.
But which ASX gold stocks could be buys? Let's look at seven that Bell Potter currently rates as buys.
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Tailwinds re-emerging
Before looking at the gold miners that could be buys, let's hear what Bell Potter is saying about the gold price.
The good news is that the broker believes the precious metal could strengthen as tailwinds re-emerge. It explains:
The last few months have seen markets reacting to Presidential social media posts more than fundamentals. We are now looking for the drivers that may re-emerge for the gold price, with a bit of clear air. In the first instance we see opportunities for:
Central Banks purchasing remains a price insensitive tailwind. The World Gold Council's annual survey of Central Bank purchasing intentions reinforces they remain positive on gold, highlighting its significance as a reserve asset in a volatile geopolitical and economic environment.
Iran conflict continues on a trajectory to resolution: The war in Iran has been pushing oil / real yields higher and gold lower. We expect a deescalation to do the reverse. While it is a bumpy road, we expect the trend to remain towards a ceasefire / peace deal. Gold equities have pulled back but balance sheets, margins and exploration momentum remain strong. Quality companies and projects are attractive.
The ASX gold stocks to buy
The seven ASX gold stocks that Bell Potter is bullish on are as follows:
The broker has a buy rating and $2.10 price target on Alkane Resources Ltd (ASX: ALK) shares.
Catalyst Metals Ltd (ASX: CYL) shares have been given a buy rating and $14.60 price target.
Bell Potter rates Capricorn Metals Ltd (ASX: CMM) shares as a buy with a $16.25 price target.
Gold giant Evolution Mining Ltd (ASX: EVN) has been given a buy rating and $16.45 price target.
Bell Potter has a buy rating and $9.90 price target on Genesis Minerals Ltd (ASX: GMD) shares.
Minerals 260 Ltd (ASX: MI6) shares have a buy rating and $1.35 price target on them.
Finally, the broker rates ASX gold stock Regis Resources Ltd (ASX: RRL) as a buy with a $9.45 price target.
