Gold continued the upside rally on the rising concern over the worsening debt crisis and the spreading contagion.

Fears over the outlook for the health of the global recovery and the financial system's stability is bolstering demand on the haven yellow metal which was bolstered further today as the dollar lost grounds, yet gold remains buoyed by the rising fears.

Late Tuesday Moody's added to the pressures as they downgraded Ireland's credit rating to junk following last week's move on Portugal which intensified the problems.

As of 12:27 GMT Gold for immediate delivery climbed to the new record at $1578.67 per ounce slightly above the previous record set on May 02 at $1575.62 per ounce, the metal is still trading with gains at this time at $1573.47 per ounce.