What do you mean “gold based?” You mean that the Fed can issue dollars only if it has an equal dollar amount of gold in Fort Knox? If so, we would be in perputual recession since that doesn’t grow very fast.
No, the price of the dollar in circulation would increase in value, like any other good in demand.
The reason the price of gold as risen in relation to the dollar is because that the price of the dollar has decreased so there are too many dollars in circulation.
The laws of supply and demand operate on money like any other good.
What Has Government Done to Our Money?/Case for a 100 Percent Gold Dollar
AUTHOR: Rothbard, Murray N.
http://www.mises.org/store/-P224C1.aspx