* 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 “crazy”.
“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)