In August, the gold price of the Shenzhen Composite fell for a third straight month. Despite tumbling from 0.38 gold ounces at the end of May to 0.25 gold ounces in August, the gold price of the index is still up 62.4% over a 12 month period. August was especially brutal for international investors in Chinese equities. The valuation of the stock market fell, the renminbi depreciated against the dollar, and the dollar price of gold went up. Any central bank activity to halt the first trend will only accelerate the latter two trends.
