Gold is not used as money anymore. And if you exchange your money for gold. Then you won't be able to buy anything with that gold.

Gold is a commodity now mainly used for jewelery and some industrial purposes. A lot of investors also buy gold in the hope that some day it might be used as money again. But so far there is no government in the world planning to go back to the gold standard for their money.

The US dollar is currently backed by the full power and authority of the US Federal Reserve, which is currently headed by Mr. Ben Bernanke. And as long as people believe in the power and authority of the US government, then they will accept US dollars in exchange for goods and services. Which is how the purchasing power of the US dollar comes into existence. 

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Prior to 1861 the U.S. dollar- every single bill- was backed by a piece of gold and could be traded in for its worth in gold somewhere in the U.S. (at a bank, i would presume)

Now, I will repeat myself. The only thing that makes the U.S dollar worth anything today is the fact that the government says it's worth something.

Why do other countries value it so much then?

Because as a world power, America has the privilege of creating value where there is none. We can see that the European's monetary system, the Euro, as well as the U.K's system of the pounds are both ranked higher in value to that of the U.S. dollar. This is determined by two main factors:
1.) The economy of the region in which the dollar is produced and used.
2.) The amount of gold which backs up the said money.

Source

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