I'd put on a new tire. It looks like you hit something and it cut into the tire rubber, maybe damaged the casing, too. Take the punctured one back to the shop you bought it at (if from a shop) and see if they'll replace it. I had a similar situation a few years ago, something sharp slit my brand-new tire only 3 miles into a pre-dawn ride, and REI exchanged it no-questions-asked.
FWIW: I've never had much luck with Continental bicycle tires, haven't used them is quite a few years. Biggest problem was the sidewalls kept rotting out and chafing the tubes when the cord started fraying after about 6 months (I keep my bicycles inside the house in a spare bedroom, so it wasn't sun exposure).