Evolution Mining Ltd (ASX: EVN) shares have fallen further into the red today.
At the time of writing, the ASX gold shares have fallen by over 5% to $11.30 each.
The update means Evolution Mining shares have now fallen roughly 11% this week alone, reversing any gains made through late June.
The stock is now down around 11% year to date, but still an impressive 44% higher than this time last year.
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What has happened to Evolution Mining shares today?
There isn't any price-sensitive news out of Evolution Mining today, or earlier this week, to explain the latest sell-off.
It's likely the latest share price drop is due to broader weakness across the gold sector.
The price of gold has fallen sharply over the past month. At the time of writing, gold is trading around US$4,110 per ounce, down from around US$4,500 in June and significantly below the US$5,300 to US$5,400 range seen earlier this year.
Given that lower gold prices translate directly into lower expected revenue and cash flow for ASX gold miners like Evolution Mining, it has a direct influence on share prices.
At the same time, it's likely that many investors are taking their profit off the table after the shares climbed higher through June.
Evolution is due to release its June-quarter production and cash-flow results in mid-July. Ahead of major operational updates, it's not usual for some investors to sell some of their shares in anticipation of the next announcement. This is particularly the case when commodity prices are falling.
What do brokers tip next for the ASX gold miner?
It looks like the experts are divided about the outlook for Evolution Mining shares over the next 12 months; however, the majority agree there will be some upside ahead.
Market Index data shows the majority of brokers have a hold rating on the gold stock. However, the average target price of $13.82 implies a potential 21% upside over the next 12 months.
TradingView data shows some analysts are a little more bullish. The majority (nine out of 20) of analysts have a buy or strong buy rating on Evolution Mining shares. Another eight have a hold rating on the stock, and three rate the shares as a sell or strong sell.
The average $13.66 target price also implies around a 21% upside, at the time of writing. However, the more bullish of the bunch have forecast the shares to surge another 72% up to $19.45 a piece over the next 12 months.
The team at Morgans think recent sector weakness provides a compelling entry point for Evolution Mining shares. The broker has a buy rating and a $15 target price on the mining shares.
Macquarie also has a buy rating on the ASX gold shares and a $14 target price.
Bell Potter is also bullish on the outlook for the gold giant's shares. The team has a buy rating and a $16.45 target price.
