GERMAN ANALYSTS SEE GOLD FIRMING LATER THIS YEAR
The price of gold bullion is likely
to rise in the second half of the year on increased private
investor demand, West German analysts said.
    Gold could rise as high as 500 dlrs per ounce later this
year, said Peter Witte, director of Westdeutsche Landesbank
Girozentrale's trading division, after a presentation by the
U.S. Mint to promote its gold and silver Eagle series coins.
    "A lot will depend on oil prices and developments on stock
exchanges," Witte said, adding he saw gold positioned for
further rises once it breaks out above 450 dlrs.
    Gold was fixed this morning in London at 411.30 dlrs.
    Despite current strong interest in gold mine stocks, many
investors still want to buy physical gold, Witte said.
    Interest in gold mine stocks may also wane if stock
exchange rallies under way in many countries start to waver.
    Hermann Strohmeyer, vice president of Commerzbank AG's
foreign exchange trading and treasury department, said gold is
poised to rise to 460 to 470 dlrs an ounce in the second half
of this year.
    The price is unlikely to fall much below 380 or 390 dlrs an
ounce, and probably will continue in a range between 380 and
430 dlrs in the first half of this year, he said.
 Reuter
