Gold prices are having another positive run on Monday, rising 1 percent at the day's highs, which brings the metal $50 above where it traded when April began. But with the situation in Ukraine growing more volatile, and the Fed reiterating its commitment to improving the labor market, the rally in gold could just be getting started.

"Gold should probably have a stronger response to many of the things going on than it is right now. I'm a little confused why it isn't going higher," said Jim Iuorio of TJM Institutional Services. "Everything I read and see should be supportive of gold prices. The situation in Ukraine is getting worse, and the Fed has shown they would rather err to the side of dovish."

In eastern Ukraine, several buildings have been taken over by pro-Russian militants. And a Monday deadline that the Ukrainian government set for the protesters (whom U.S. Ambassador to the United Nations Samantha Power says are professionals involved with the Russian government) to leave the buildings has come and gone.

Recently, Russia has warned that Ukrainian actions against the pro-Russian protesters could lead to a civil war. These tension in eastern Ukraine come after the Russian annexation of the Crimean peninsula.

Read More Gold on the rise as Ukraine turmoil trumps sunny US data

Geopolitical tensions tend to be good for gold, given the metal's use as a safe-haven asset. But that's not the only catalyst traders are looking at.

Gold has also been buoyed by falling interest rates over the course of the month, which stems the attraction of bonds when they are compared with non-yield-bearing assets like gold. The recent decline in stocks has not hurt either.

"This is the perfect trifecta of reasons gold should rise: low interest rates, geopolitical tensions and fear about the strength of the economy," wrote Anthony Grisanti of GRZ Energy.

In fact, Grisanti bought gold on Monday at $1,321, with a target of $1,340.

Read More Will gold ever recover from its '$1 trillion crash'?

Iuorio wants to get into gold too—but he would like to see it trade a bit higher first.

"When I look at it, the only reason it's not flying higher is because of some technical reasons," Iuorio told CNBC.com. "If it rises another $10, and it settles there, it could move considerably."

If gold settles at $1,335, then, Iuorio will "consider pulling the lever," and play for a rise up to $1,390.

—By CNBC's Alex Rosenberg.

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