ASX Gold Stocks Are Exploding: Buy Before It Is Too Late

Gold stocks are taking off right now, and the window is closing for what might be the best gold setup seen in years. These types of opportunities do not come around often, and with a major shift unfolding in the Chinese gold market, three ASX gold stocks are showing technical setups that every serious trader should have on their radar.

In this episode of the Hot Stock Tips Show, senior analyst Filip Tortevski and analyst Pedro Banales break down the China gold news, the state of the gold price, and three ASX gold miners that are lining up beautifully.

China Just Changed the Gold Game

Three days ago, China's largest bank stopped offering retail paper gold trading products linked to the Shanghai Gold Exchange. Retail investors have been forced to either close their positions, cash out, or take physical delivery. This has triggered a wave of theories about what happens next to the gold price.

Is China simply trying to reduce speculation? Or is China deliberately shifting the market from paper pricing to physical pricing? The official statement was that the move was designed to protect investors from price volatility, given that gold has fallen around 30 per cent from its all-time high. But there is likely something deeper at play.

By restricting speculative paper trading, China is pushing the market towards natural price discovery based on physical gold. Think of it like housing. Imagine a futures market that predicts what houses should be worth, running alongside actual physical house sales that may not reflect that speculative value. 

That is exactly the dynamic playing out in gold. China has been the biggest buyer of physical gold in recent years, and that ties directly into their broader ambition for currency dominance. Nobody was complaining when gold was trading at $5,000 an ounce on the way up, but the pullback has forced action.

The important reality for traders is that institutions can still trade paper products and ETFs, so the impact on liquidity is limited. However, if a large chunk of that retail Chinese demand pivots into physical gold, some theorists are already floating $10,000 gold price targets. Whether that plays out or not, the technicals on ASX gold miners are painting an exciting picture right now.

Stock 1: Capricorn Metals (CMM)

Capricorn Metals came out with mega news today. The company has lifted its gold reserves by 33 per cent to more than 5.2 million ounces, extending mine lives and putting the company on track to produce over 400,000 ounces of gold a year within the next few years. Even more impressive, Capricorn based its reserve estimates on conservative gold prices of just $2,200 to $2,600 an ounce Australian, highlighting the significant upside if gold prices remain elevated.

Technically, Capricorn is beautifully trending. Since the acceleration in May 2024, the stock has pulled back in March 2026 and again in June 2026, and each time it has found strong buying. If gold really has found a low around $4,000 and turns the corner, a higher gold price only strengthens the setup for Capricorn.

In the short term, price has now made three instances of holding higher, which is a very promising sign. There is short-term resistance at $14.20, and the stock has tested this level for five consecutive weeks without a close above. However, the pullbacks are getting shallower each time, which often precedes a serious breakout run. Longer term, the price action is more of a sideways consolidation than a deep correction, which is unusual for Capricorn given its history of sharper pullbacks. That behaviour suggests accumulation.

If Capricorn breaks $14.30, the next leg could push through the all-time high of $16.40 and potentially into the $17 to $18 region. The line in the sand is $11.20 to $10.80. If those levels break, expect a deeper pullback into the $9 region. Watch volume closely, as it is currently compressing along with price. A breakout should be confirmed with rising volume. Historically, Capricorn has delivered runs of 273 per cent and 252 per cent from previous lows, so the reward for getting the timing right is significant.

Stock Two: Evolution Mining (EVN)

Evolution Mining also dropped big news today with a $213 million acquisition of Carnaby Resources, securing the high-grade Greater Duchess project in Queensland. The deal integrates the project with Evolution's nearby Ernest Henry operations, reducing development costs and unlocking operational synergies. This expansion strengthens Evolution's copper and gold growth pipeline meaningfully.

Since the 2022 low, Evolution has surged around 800 to 900 per cent. That is a phenomenal run driven by the shift in momentum from a two-year downtrend that began in 2020. Right now, the stock is in a pullback with five consecutive down months on the monthly chart. However, the move is clearly slowing down. Each successive month has shown a smaller range between the open and close, meaning sellers are getting exhausted and buyers are starting to step back in. The price is compressing.

The critical level is $10.20, which rounds to $10. That has been an important support level historically. If Evolution can hold above $10 and break above the current downward momentum line, the stock is set up to run again. The playbook is similar to what happened at previous major bottoms, where a momentum shift was followed by a volume spike that confirmed the trend reversal. 

That volume signature has not yet appeared, so this is a watch rather than an act, but watch it closely. If the reversal comes with high volume confirmation, Evolution has the potential to take off sharply.

Stock Three: Westgold Resources (WGX)

Westgold Resources is the pick of the bunch. It looks more advanced than Capricorn and Evolution in terms of where the momentum is turning. Where the other two are still testing their downward momentum lines, Westgold has broken through, which is exactly what you want to see.

Looking at the down move, there have been five weeks of selling that still could not push the price lower than the buyers took it up in a single week on 19 June. When the market struggles to sell for extended periods but rallies aggressively in short bursts, that is a very positive dynamic. The line in the sand is the $4.24 low from June. Hold that and the stock has real potential.

There is another compelling technical feature. Westgold pulled back to fill a gap that formed when gold shot off, and it has now found buying at that level. Last month the price went through the gap and closed above it. This month it is bouncing into it again. Gaps carry significant weight because they represent a moment when demand was so intense between one close and the next open that price could not fill back in. In today's algorithm-heavy market, gaps that stay unfilled tell you something important about underlying demand. Having pulled back to it and finding buyers is a strong sign.

Upside targets are clear. A break through $5.12 to $5.13 opens the door to $5.40 to $5.50 short-term resistance, then a clean run to $6.80 and the all-time high of $7.95. Volume is also cooperating. During the down move volume picked up, but has fallen away sharply during the recent basing, and combined with the price action this is a classic slowing-of-selling signal.

Westgold also has a very tight correlation with the gold price, and gold typically leads with Westgold following through. Gold is currently ticking up and Westgold is following, gapping up around 6 per cent in the latest session. If gold continues higher, Westgold should track it. Keep a close eye on the gold price because that is the driver, but the stock is ready to make a move.

What This Means for Traders

Three miners, three stages of the same setup. Capricorn is consolidating and coiling for a breakout. Evolution is compressing with sellers exhausting but still needs a volume-backed momentum break. Westgold is already reversing, filling a gap, and setting up cleanly for the next leg up. Combined with the shift in the Chinese gold market and a gold price that appears to have found a floor around $4,000, the sector is preparing for what could be a powerful next move.

The key across all three is not blindly buying because the story sounds good. It is watching the specific technical triggers. Momentum line breaks, volume confirmation, holding key support levels. That is what separates traders who capture these moves from those who watch them go by.

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Final Thoughts

Gold has been in a serious pullback, but the technicals on Capricorn Metals, Evolution Mining, and Westgold Resources suggest the reversal may already be underway. China's shift on paper gold could add fuel to the fire, and with production upgrades from Capricorn, acquisition-driven growth from Evolution, and a clean chart from Westgold, all three miners are in the frame for the next major move in the sector.

But none of these opportunities matter without the discipline to wait for confirmation and the skill to manage risk. Watch the levels, respect the volume, and let the market prove itself before committing capital.