How the Gold standard worked

The gold standard basically identifies the countries GDP. The gold standard is a international standard in determining a countries wealth or value. But as more and more gold discoveries happened,  price levels of gold began to become very unstable in the short run.
The California gold discovery in 1848 is an example of how unstable gold became in the short run. The newly discovered gold increased the U.S. money supply,  and, more so, the price level. The increase in  price level had the United States exports valued higher for America’s traders. 

In the trading partners, the money supply increased, raising domestic expenditures, nominal incomes, and, ultimately, the price level. (Bordo) 

Article:Gold Standard
Author: Michael D. Bordo
Publisher:Library of Economics and Liberty