US economy's job pain is 'gold's gain': Trader

After falling more than 7 percent from its May high, gold is suddenly surging.

The precious metal rallied nearly 3 percent back above $1,245 after a soft jobs number had traders fleeing equities and running toward safe haven assets. The jump has Evercore ISI technical analyst Rich Ross betting that the yellow metal will head even higher for a number of reasons.

Read MoreWorried about the market after US jobs slump? You should be: Pro

First, May's lagging job numbers have given way to "collapsing odds of a Fed rate hike this summer," Ross explained Friday on CNBC's "Trading Nation." Gold has been under increasing pressure as a strong dollar and potential for a June hike has rattled investors. But with an interest rate hike later this month looking less and less likely, and the dollar index now trading near three-week lows, Ross believes gold will continue to rally.

Looking at a chart of the GLD exchange-traded fund (ETF), which tracks gold, Ross he expects the fund's gains to run as high as $122—possibly even up to $124 before encountering resistance levels.

"Today we gap open at that weak employment number. You're into resistance at the 50-day moving average, that comes in around $119," said Ross, outlining the GLD's recent highs and lows.

"Now ultimately, I think we retest the high of this range, that $115 to $122, just about at the high end with the peak at around $124." That would represent a more than 4 percent rise from current levels and puts the ETF at its highest point since January 2015.

"To sum it up, job's pain is gold's gain," he added.

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