Gold prices in India declined more than one percent on the Multi Commodity Exchange (MCX) on Wednesday as investors opted to sell after a sharp rise in the previous session, analysts said.

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At 1:30 pm, Gold futures for April fell 1.83 percent to Rs 39,507 per 10 grams as against the previous close of Rs 40,244 and opening price of Rs 40,127 on the MCX.

A stronger rupee applied pressure on the yellow metal prices. The rupee traded 11 paise higher at 74.37 against the US dollar. It opened at 73.99 per dollar against the previous close of 74.25.

"Any rally in gold prices may be used as a selling opportunity. Investors opt for selling in the yellow metal as they want to sit on cash amid risk aversion across markets," said Amit Sajeja. AVP Research - Commodities & Currencies at Motilal Oswal.

In global markets, gold erased early gains to fall more than 1 percent on Wednesday as mounting fears over the economic hit from the coronavirus overshadowed additional stimulus measures by the United States and prompted investors to sell precious metals to hoard cash.

Spot gold fell 1.1 percent to $1,511.72 per ounce by 0701 GMT. US gold futures were down 0.9 percent to $1,512.10 an ounce.

Sajeja expects gold prices to fall below $1,400 per ounce in coming days as sentiment remains weak.

Meanwhile, silver futures traded 1.66 percent lower at Rs 34,865 per kg. The prices opened at Rs 35,700 as compared to the previous close of Rs 35,453 per kilogram.

(This copy will be updated periodically through the day)

First Published:Mar 18, 2020 9:28 AM IST