NEW YORK ( TheStreet ) -- Gold and silver prices shined as safe haven assets Tuesday on a broad commodity rally and as European debt worries plagued investor sentiment.

Gold for June delivery added $7.90 to $1,523.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,529 and as low as $1,513.20. The spot gold price was up $7.50, according to Kitco's gold index.

Silver prices jumped $1.22 to $36.12 an ounce. The U.S. dollar index was shedding 0.38% to $75.85 which was helping the metals as they became cheaper to buy in other currencies.

European woes were front and center Tuesday. European countries have reportedly been preparing for a Greek default that would result in delayed repayments. Moody's is also threatening to downgrade the credit rating of some of the U.K.'s biggest banks.

Long term borrowing costs for Italy, Portugal, and Spain jumped Monday as investors were reluctant to lend money to the troubled countries. Portugal is in bailout mode, Italy received a credit downgrade, and Spain has a new ruling party that could derail its own austerity measures or uncover more debt problems.

Goldman Sachs also might have called a bottom in commodities after it revised its outlook upwards for oil. Although, its gold and silver price targets were unchanged at $1,690 and $28.20, respectively. Morgan Stanley increased its oil price forecast by 20%. The bullish sentiment helped drag all commodities higher.

A wild card for all commodities, however, is growth in China. Goldman slashed China's 2011 and 2012 growth forecast to 9.4% and 9.2%, respectively. If the country slows too much there won't be enough money to buy goods, from commodities the country actually consumes to gold, which is bought as a store of wealth. Goldman said China's inflation will fall to 4.7% in 2011, it is currently at 5.3%, and to 3% in 2012.

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