The spot price of gold (GLD, quote) remain basically flat in the pre-market session as it continues to trade near its 2 ½ week high.

Traders remain cautious ahead of today’s U.S. Trade Balance Report due out at 8:30 this morning.

Looking at gold prices in the futures market we find support hovering right around the $1280 to $1285 level while resistance comes in at the April 15 high of $1326.90…let’s just call it $1327. As price make lower higher and lower lows below the long term trendline puts the gold bugs in a much tougher position than the bears to move price beyond support/Resistance.

Pressure also came from well supported U.S. dollar (UUP, quote) after the U.S. Institute of Supply Management reported it saw the non-Manufacturing Purchase Managers’ Index jumped to 55.2 for the month of April up from the preview reading of 53.1.   Remember a reading of 50 or above is consider a growth economy.

On the flip side the gold bugs are trying to find traction for additional strength in the shiny metal as the Ukraine and pro-Russian forces battle it out. Look for gold to test resistance or even break above if fears continue to grow that U.S. will be dragged into yet another conflict.

The latest threats from the U.S. came from U.S. Secretary of State John Kerry on Sunday when he threatened Russia (RSX, quote) with additional sanctions. He went on to say that Russia needs to stop backing separatists in Eastern Ukraine.

We reiterate our position on gold and will closely monitor the situation.