At a KBC broadcasting facility in the Stone Tower Zone, Mr Gold holds Amy Rose hostage as he works with Kane for their own goals. Gold reveals S.P.E.A.R. have uncovered how Robotnik is controlling his Badniks and intends to scramble the frequency- and, he intends, Robotnik's brain. This, he claims, is the first phase of his plan. The next step is down to Kane, using powerful broadcast technology, though Gold doesn't go into greater detail than that. Gold orders S.P.E.A.R.'s Cybernik army to be deployed.
On the streets, Tails is saved from a Cybernik attack by Captain Blue. The S.P.E.A.R. Cyberniks are nowhere near as strong as Robotnik's and fall prey to a disruptor gun blast. Blue tells Tails that when Gold captured Amy, he realised his former boss was a villain, so Blue made his escape with Gold's gun.
As S.P.E.A.R. holds the Zone under lockdown, Kane realises he stands to come out a loser by aligning himself with Gold- his attempts to spin the story in a positive light through his media outlets have failed. Following a disagreement with Gold, Kane takes the opportunity to leave. Gold, meanwhile, waxes lyrical at Amy about Robotnik. He reveals he was once in Robotnik's employ and his "reward" was to be used as an experiment- Robotnik used him as a test to see how an animal/Badnik hybrid would work. Gold reveals he intends to modify the signal Robotnik uses to control his Badniks and use it to subjugate the population of Mobius, effectively becoming its dictator like Robotnik before him.
Tails and Blue find themselves facing down a Cybernik, but the disruptor gun needs time to recharge. As Tails does his best to subdue the deadly foe, Blue commandeers a van and rams it into the Cybernik. The armour's helmet pops off, revealing the S.P.E.A.R. Special Forces soldier inside to be alive but unconscious. Tails and Blue hear a voice from an alleyway: Kane has arrived and he wants to talk.
Kane tells Tells and Blue the truth of the matter about Gold- he's hardly being altruistic, however, he just understands that a world that is blindly brainwashed is no haven for a media empire like his. Unfortunately, Gold is watching Kane via surveillance and sees his betrayal unfold. Gold powers up the machine that will see his plans come to fruition. As Tails and Blue make their way to the broadcast building, they find themselves onset by the Cybernik Army. Blue shoves Tails inside the building and tells him to stop Gold while he deals with the Cyberniks. Tails manages to locate Gold but is caught in an explosion of Gold's own making.
As Gold moves in to kill Tails, Amy shatters his prosthetic hand using a leg of the chair she was previously bound to. Telling Tails to stop the machine, Amy faces Gold in combat. Hand-to-hand, Gold is absolutely no match for the experienced Amy. Tails is able to shut down Gold's machine and Gold realises he is defeated.
In the aftermath, Gold is defeated. The hostages that S.P.E.A.R. took in The Hunted are revealed to have been hidden in Metropolis High Security Prison by corrupt police officers. Comissioner Bodger is shown to be dealing with the traitors- ironically, utilising his power afforded to him by S.P.E.A.R.'s machinations. Captain Blue talks to Amy via video communication. He is badly injured but still smiling after taking out all the remaining Cyberniks. He and many of S.P.E.A.R.'s other recruits are set to transfer to G.U.N.- and, it seems, Blue is going to take a desk job rather than remain on the front lines! Amy has high hopes for Blue's future and is satisfied that S.P.E.A.R. is no more and Gold has been dealt with.
- Mr Gold's first name is revealed to be Fred. The arresting officers that capture Gold are a purple rabbit and a yellow chick. This is a reference to the video game series Five Nights at Freddy's where Freddy Fazbear (a brown bear much like Gold), Bonnie (a purple rabbit), and Chica (a yellow chick), are animatronic mascots. The other main mascot in the series is Foxy, an orange fox- with Tails arguably filling that role in this story. Interestingly, the only other mascot character in the first game is called Golden Freddy- almost the reverse of Mr. Gold's full name.