Because Morty has to attend the grand reopening of Moomoo Farm, and then a month-long conference in Kanto the next day, he is unable to accept Gold's Gym challenge. He decides to just give Gold the Fog Badge for free, insisting that he has already seen Gold's true strength even though they have not battled yet. Gold refuses to accept it, because he feels like he has not truly earned it if he does not participate in a battle for it.
Gold follows Morty to Moomoo Farm, where he decides to enter a Pokémon tournament judged by Morty, in which the winner will battle him. Unlike other tournaments, however, it is restricted to small, low-level Pokémon. Gold decides to register with his Elekid.
Gold wins and battles his way up through the tournament, as does another Trainer, Elite Trainer Akira. They have a heated battle, with Gold's Elekid winning, despite Mareep lowering its stats with attacks such as Cotton Spore and Growl.
The tournament ends, but because it is past sunset, Morty is still unable to battle Gold. He gives the Fog Badge to Gold and tells him to keep it, at least until he can battle him to earn it for good. Gold agrees, and they part ways.