GERMAN BANK SEES HIGHER GOLD PRICE FOR 1987
Gold is expected to continue its rise
this year due to renewed inflationary pressures, especially in
the U.S., Hamburg-based Vereins- und Westbank AG said.
    It said in a statement the stabilisation of crude oil
prices and the Organisation of Petroleum Exporting Countries'
efforts to achieve further firming of the price has led to
growing inflationary pressures in the U.S.
    Money supplies in the U.S., Japan and West Germany exceed
central bank limits and real growth of their gross national
products, it added.
    Use of physical gold should rise this year due to increased
industrial demand and higher expected coin production, the bank
said.
    Speculative demand, which influences the gold price on
futures markets, has also risen, the bank said.
    These factors and South Africa's unstable political
situation, which may lead to a temporary reduction in gold
supplies from that country, underscore the firmer sentiment, it
said.
    However, Australia's output is estimated to rise to 90
tonnes this year from 73.5 tonnes in 1986.
 Reuter
