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.
  

