Summary: Gold recovered last week, rising almost 5% against the dollar, but it's still a long way off its peak of $1000 an ounce. The euro stabilized as well, gaining a bit against the dollar after losing ground over the last few weeks.

Movements in the price of gold have been hard to explain lately. Some of that is due to gold's dual role as both a commodity and a currency. There also seems to be a divergence between real gold and paper gold lately. As gold prices dipped below $800 an ounce, it suddenly became hard to find real gold coins at near that price.

So what exactly is going on here?

Summary: It was a dramatic week in the markets last week, with gold falling 6% against the dollar, oil falling almost 9%, and the dollar gaining 4% against the euro. The dollar's strength was attributed to the realization that the whole world will share in whatever downturn is facing the United States. As for the fall in the commodities like oil and gold, it could either be a correction from a commodities bubble, or a tip of the balance toward deflation and away from inflation. All of the above bodes well for U.S. corporate profits, so U.S. stocks were up sharply.

Then, with amazing timing, war broke out between Russia and Georgia...

Virtually everyone believes Georgian President Mikheil Saakashvili foolishly provoked a Russian invasion on August 7, 2008, when he sent troops into the breakaway district of South Ossetia. "The warfare began Aug. 7 when Georgia launched a barrage targeting South Ossetia," the Associated Press reported over the weekend in typical fashion.

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It is reported recently that Spain's National Court has launched an investigation into alleged crimes against humanity committed in Tibet, indicting Chinese political and military leaders. China is accused of 'a generalised and systematic attack against the Tibetan population'. But what are the motives behind the current anti-Chinese propaganda? Have the anti-Chinese protesters at the Beijing Olympics missed an opportunity?