Gold and silver rose ($939.80 up $4.40 – Silver $13.65 up 18 cents) yesterday on deepening concerns about the dollar and fears that its reserve currency status is threatened.

Next week could see sharp moves in financial markets as the dollar’s dominance in the international monetary system is set to be questioned at the G20 Summit (Thursday, April 2nd). The US creditors in China and Russia are proposing creating a new supra-national reserve currency, thereby lessening dependence on the dollar. Treasury Secretary Tim Geithner let slip on Wednesday that Washington was “open” to the idea.

It is not just large holders of US debt who have voiced concerns about US economic, monetary and fiscal policies. The holder of the EU presidency, the Czech Republic’s prime minister, Mirek Topolanek, condemned American remedies for the global recession as “the road to hell”.

And importantly, a distinguished and respected UN panel has urged a reform of the international monetary system. The United Nations General Assembly was told on Thursday, that world leaders should give urgent attention to reaching consensus on creating a global reserve system that would replace the US dollar as the main international currency.