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.
  

