I believe so. Smoke has no effect while Heavy Winds are in effect, and Gusts will eliminate dispersed Smoke. But neither rule prevents Smoke grenades during Gusts. Mild winds also do not affect smoke grenades. I assume this is all correct due to the short term nature of smoke grenades and the intermittent nature of Gusts.
Smoke grenades are allowed during a turn when gusts has been rolled, and indeed all SMOKE placement is allowed (e.g. during PFPh, MPh by smoke dispensers, DFPh, AFPh), but SMOKE placed during that turn be reduced/removed at the start of the AFPh.