Was the Balrog drawn by the ring?

[Tar-Jêx]

That is a fair point about the Balrog not being awoken by the battles between the dwarves and the goblins, but it did eventually show up. Maybe it was trying to find a way up to them?

On the topic of knowing the ring was there, Maiar like Gandalf and Saruman were not aware if the ring was with them unless they could physically see it.
After all, it IS still just a ring.
The watcher in the water would be an interesting topic for debate, but it is likely that the Balrog was a more powerful entity, more resistant to the magic of the ring. I doubt the Balrog would have pursued the ring because he would not have seen it. It can have a hold on people, but they do need to be somewhat close to it. Sauron's power wasn't so great that people would always go towards the ring like a magnet.
If the Balrog was drawn to the ring, would he have not tried to go past Gandalf, rather than fight him in honourable battle? Or maybe the idea of honourable battle with another Maiar was greater temptation to it.