CORRECTED - CORRECTED-UPDATE 1-Gold above $900/oz in defiance of rising doll

(Corrects third paragraph to indicate gold last breached $900/oz on May 16, not April 24) (Adds comment, updates prices)

SYDNEY, May 19 (Reuters) - Gold extended its upward price run on Monday, gaining more than half a percent to more than $900 an ounce, defying a rising dollar.

Spot gold <XAU=> cost $905.10 an ounce at 0434 GMT versus $899.55 late in New York on Friday.

Spot gold last traded above $900 on May 16. Prior to that spot last crossed $900 an ounce on April 24 to a peak of $906.30.

The break again above $900, linked to hedge buying against concerns that firmer oil prices will bring higher inflation, may set the stage for further gains in more active European and U.S. bullion trading on Monday, according to dealers.

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

Gold futures for June delivery GCM8 on the COMEX division of the New York Mercantile Exchange added $5.90 an ounce to $905.80 an ounce in electronic trading.

A contract close above $900 an ounce could send gold futures to test the next resistance between $920 and $925.

Gold raced to an all-time high of $1,030 an ounce in mid-March, but fell as low as $845 in early May.