To construct a golden rectangle start with a
double square i.e. a 1 by 2 rectangle.
The diagonal of this rectangle
will have a length which is the
square root of five times the
short side of the rectangle.
(Link to proof.) (pythagoras
theorem)
Next if you draw a circle with a
radius equal to the side of the
square centred on the corner
of the double square, you can
extend the diagonal out to the
circumference of the circle.
This makes a line which is the
square root of five plus one
times the side of the square.
The next step would be
to draw a circle with a
pair of compasses
centred on one end of the
 red line.
Finally to make the width of the
golden rectangle extend the  bottom
line of your double square out to the
circumference of the circle.

For the height use the long side of
the double square.

Add the other two lines at right
angles to the loose ends.

This gives a rectangle whose width
is the square root of five plus one
times the length of the side of the
small square and whose height is
twice the length of the side of the
small square.

Which makes the width the square
root of five plus one divided by two
times the height.
Alternatively
you can
make a
smaller
golden
rectangle by
starting from
this stage
and drawing
a circle
centred on
the opposite
corner of
the double
square
whose edge
touches but
does not cut
the first
circle.
Extend the width of the rectangle
to the circumference of the last
circle as shown by the yellow lines
in the picture. This is a golden
rectangle as two into root five minus
one is the same as root five plus
one into two.

There are infinitely many other ways
to do it.

Sacred Geometry