Gold prices on Thursday jumped Rs 250 to breach the record Rs 40,000 per 10 gram level for the first time at the bullion market here on strong demand from investors amid growing fears of global economic slowdown.

Maintaining its record-breaking run for the second day, gold spurted by Rs 250 to a fresh life-time high Rs 40,220 per 10 grams, according to the All India Sarafa Association. The precious metal had soared by Rs 300 to close at Rs 39,970 per 10 grams on Wednesday.

Closing in on the Rs 50,000-mark, silver rose by Rs 200 to Rs 49,050 per kg on robust demand from industrial units and coin makers amid strong overseas trend.

Lingering worries over a possible global recession and uncertainty over the US-China trade talks boosted the demand for safe-haven bet gold, traders said.

Fresh buying by jewellers ahead of the festive season also aided the rally in the precious metal.

HDFC Securities Senior Analyst (Commodities) Tapan Patel said gold prices have kept the firm trading so far on mixed global cues as inverse bond yields from the US and Germany have raised economic slowdown fears.