* Asian shares tank after rout in Wall St on Wednesday
* Holdings in SPDR Gold Trust rise for the first time since July
* Trump says Fed "crazy" for raising interest rates
(Updates prices, adds quotes)
By Vijaykumar Vedala
BENGALURU, Oct 11 (Reuters) - Gold prices rose on Thursday as
share markets in Asia and U.S. plunged to multi-month lows and the
dollar weakened, but gains were limited by the prospect of multiple
rate hikes by the U.S. Federal Reserve over the next year.
Asian shares slid to a 19-month low on Thursday after Wall
Street's worst losses in eight months led to broader risk aversion.
Spot gold was up 0.3 percent at $1,198.04 an ounce at 0815 GMT.
U.S. gold futures were up 0.7 percent at $1,201.6 an ounce.
"The sentiment that we have seen this morning with the Wall
Street and Asian markets tanking is a chance for gold prices to
reintroduce as a safe haven again, especially at this time of poor
risk appetite," OCBC analyst Barnabas Gan said.
"That is something investors will be looking very closely if
the dollar falls further."
The dollar index , which measures the greenback against a basket
of six major currencies, was down 0.2 percent.
Data on producer prices, which rose in September after declining
the previous month, in addition to a revision to wholesale inventory
estimates for August, added to a hawkish outlook on interest rates.
"I think Fed isn't going to change its glide path and this is
the reason that we are not seeing any major move in the gold
price," Think Markets UK chief markets analyst Naeem Aslam said.
"But again, if the sell-off (in equities) continues at this
intensity, all bets are off, we could see the precious metal shooting
towards the sky."
The Fed can likely stop raising U.S. interest rates once they
reach about 3 percent, as long as inflation remains around 2 percent
and the economy is doing well, Chicago Federal Reserve President
Charles Evans suggested on Wednesday.
U.S. President Donald Trump said Wednesday's stock market sell-off
was a long-awaited "correction," and the Federal Reserve,
which has been raising U.S. interest rates, had gone
"Rising interest rates is not good news for gold. People are
preferring U.S. Treasury bonds as they are more attractive in the
current environment over gold, despite the sell-off in equities,"
said Ronald Leung, chief dealer, Lee Cheong Gold Dealers, Hong Kong.
Hawkish commentary from Fed policymakers had triggered a sudden
sell-off in Treasuries last week and sent long-term yields to their
highest in seven years.
Holdings in SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, rose 1.21 percent to 738.99 tonnes on Wednesday,
for its first gains since July.
Meanwhile, spot silver was up 0.1 percent at $14.38 an ounce
and palladium rose 0.2 percent at $1,069.22. Platinum gained 0.5
percent to $822.70 an ounce.
(Reporting by Vijaykumar Vedala in Bengaluru Editing by Joseph
Radford, Amrutha Gayathri)
((email@example.com; +91-80-6749-6421 / 1298 (If
within U.S. call 651-848-5832); Reuters Messaging: firstname.lastname@example.org))