UPDATE 2-Gold above $910 as dollar hits 2-½ week low

(Recasts, updates prices)

SYDNEY, May 19 (Reuters) - Gold gained over 1 percent on Monday to more than $910 an ounce, as the dollar slid to a two-and-a-half week low against the euro.

Spot gold XAU= cost $909.40/910.40 an ounce at 0856 GMT, from $899.55/900.55 late in New York on Friday.

Strong support above $900 encouraged more investors into bullion, betting on further gains now that the key technical support marker had been solidly breached, dealers said.

"Gold was showing some drive and that could carry over," a dealer said.

It also benefited from a slide in the value of the dollar, which hit a two-and-a-half week low against the euro EUR= after weak consumer U.S. confidence numbers on Friday. [USD/]

Gold futures for June delivery GCM8 on the COMEX division of the New York Mercantile Exchange were also up more than 1 percent to $910.20 an ounce.

Gold is still well short of its all-time high of $1,030 an ounce hit in mid-March, but fell as low as $845 in early May.

Lehman Brothers analyst Edward Morse has warned that speculative buying in oil, gold and other commodities was providing "fertile ground for a potential asset bubble," where prices typically plummet once investors exit.