Guess which ASX 200 gold stock this leading broker just tipped for 21% gains

This surging ASX 200 gold stock could run far higher, according to this leading broker.

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S&P/ASX 200 Index (ASX: XJO) gold stocks have been handing investors some seriously outsized gains of late.

This comes amid a surging gold price.

The yellow metal hit new record highs again overnight, trading north of US$2,302 per ounce.

At the time of writing, that same ounce is worth US$2,301. That's up 16% from US$1,984 at the beginning of 2024.

This has helped propel the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold miners outside of ASX 200 gold stock – up 23.2% since 28 February, when bullion was fetching US$2,030 per ounce.

It's also seen shares in the world's largest gold miner, a relative newcomer to the ASX, surge by 24.6% since 28 February.

And a leading broker thinks there's more outperformance to come.

Any guesses?

If you said Newmont Corp (ASX: NEM), give yourself a virtual gold star.

ASX 200 gold stock tipped for 21% share price gains

Citi has a bullish outlook for Newmont shares, with a price target of $69. (Broker data courtesy of The Australian.)

That's 21.3% above the current Newmont share price of $56.88.

With its world-class gold and copper mines, Newmont is well-positioned to capitalise on the soaring gold price. (Copper prices are up more than 8% year to date.)

Like other ASX 200 gold stocks, Newmont has been catching tailwinds amid rising expectations of interest rate cuts from the US Federal Reserve and other global central banks. Gold, which pays no yield itself, tends to command higher prices in low or falling interest rate environments.

Central banks have also continued to buy near-record amounts of bullion, supporting global demand.

And, of course, gold's haven status has been on display, with the price rising amid escalating geopolitical tensions across much of the world.

What's been happening with Newmont?

Newmont, as you're likely aware, was previously solely listed on the New York Stock Exchange (NYSE).

That changed after the giant American gold miner acquired ASX 200 gold stock Newcrest Mining last year. The final successful takeover offer was accepted in April 2023.

This saw Newcrest exit the ASX on 26 October. Newmont shares, now dual listed, began trading on the ASX the following day, 27 October.

Newmont reported its full-year results on 23 February.

Commenting on those results, CEP Tom Palmer called 2023 "a transformational year".

Following Newmont's successful acquisition of Newcrest, Palmer said, "Our principal focus for 2024 is to integrate and transform our leading portfolio of Tier 1 assets into a unique collection of the world's best gold and copper operations and projects."

Palmer added:

With stable production and structured reinvestment throughout the year, we are strongly positioned to deliver on our commitment sin 2024 and set the stage for meaningful growth in 2025 and beyond.

Shares in the ASX 200 gold stock are up 0.5% in early afternoon trade today.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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