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 led to growing
inflationary pressures in the U.S., The world's biggest crude
oil producer.
    Money supplies in the U.S., Japan and West Germany exceed
the central banks' limits and real growth of their gross
national products, it said.
    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. These factors and South
Africa's unstable political situation, which may lead to a
temporary reduction in gold supplies from that country,
underline 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
