The gold standard eliminates the possibility of a balance of payments disequilibrium by:

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In a gold standard system, countries with net inflows of gold will see an increase in their money supply, leading to inflation and higher prices. This makes their exports more expensive and imports cheaper, causing a reduction in the inflow of gold as exports decrease and imports increase. Conversely, countries with net outflows of gold will experience a decrease in their money supply, leading to deflation and lower prices. This makes their exports cheaper and imports more expensive, causing an increase in the inflow of gold as exports increase and imports decrease. Therefore, the gold standard system automatically adjusts trade patterns to eliminate balance of payments disequilibrium.

The Gold Standard Eliminates the Possibility of a Balance of Payments