A falling dollar and ongoing worries about Europe’s debt crisis conspired to add to gold’s recent rally in early trading Wednesday. Spot gold surpassed its May 2 record high of $1,577.57, breaching the $1,580-per-ounce mark and trading at $1,579.80 Bid, $1,580.80 Ask in morning trading. Silver was trading sharply higher and was being quoted at $37.33 Bid, $37.43 Ask, according to Kitco market data.

Spot gold was set at $1,579 per ounce at the London p.m. fix, up $7.50 from the a.m. fix. Spot silver was set at $36.75, up from Tuesday’s $34.91 fix.

Debt woes continue to plague the EU. Ireland’s debt was downgraded to junk status, putting it in league with Portugal and Greece, while the cost of insuring Italian, Spanish and Portuguese debt rose to record levels this week, according to market reports.

Nonetheless, the euro rose vs. the dollar in European trading, and risk appetite returned after China reported its economy grew 9.5% year-over-year in Q2, lower than the previous two quarters but high enough to reassure investors that a hard landing wasn’t taking place.

Turning to exchange-listed products, gold and silver ETFs were higher Wednesday morning, with the iShares Silver Trust (NYSE: SLV) surging more than 4%.

• The SPDR Gold Trust (NYSE: GLD) was up more than 0.85%.
• The iShares Gold Trust (NYSE: IAU) was up nearly 0.8%.
• The iShares Silver Trust surged more than 4%.

Major gold and silver mining ETFs also were moving up smartly.

• The Market Vectors Gold Miners ETF (NYSE: GDX) was up 2.8%.
• The Market Vector Junior Gold Miners ETF (NYSE: GDXJ) was up more than 3.8%.
• The Global X Silver Miners ETF (NYSE: SIL) was trading up around 4%.

Both gold mining majors and juniors were sharply higher.

• Agnico Eagle Mines (USA) (NYSE: AEM) was trading up around 2.2%.
• Barrick Gold (NYSE: ABX) was up around 2.3%.
• Goldcorp (NYSE: GG) was up more than 2.8%.
• Newmont Mining Corp. (NYSE: NEM) was up nearly 2%.
• NovaGold Resources (USA) (AMEX: NG) reversed course from recent days, trading about 2.9% higher.

Silver mining shares surged, with Hecla Mining (NYSE: HL) leading the way.

• Coeur D’Alene Mines Corp. (NYSE: CDE) was up around 3.7%.
• Hecla Mining was trading nearly 6% higher.
• Pan American Silver Corp. (USA) (NASDAQ: PAAS) was trading more than 4% higher.
• Silver Wheaton Corp. (USA) (NYSE: SLW) was up more than 3.6%.
• Silver Standard Resources Inc. (USA) (NASDAQ: SSRI) was up over 5.1%.

The author does not hold position in any of the above-mentioned investments.