After three days of collecting minor medals behind the Australian juggernaut, the track cycling team at last had something to celebrate in unadulterated style after Shanks unveiled a stunning ride in the 3000m individual pursuit.
The men's sprint team of Eddie Dawkins, Sam Webster and Ethan Mitchell added a silver medal to New Zealand's cycling haul.
New Zealand cyclists have won nine medals - a gold, five silvers and three bronze - at the Games.
A ripple of New Zealand swimming medals at the Games turned into a sizable wave last night and early this morning, with Hayley Palmer, Glenn Snyders and Daniel Bell picking up three in four races.
Snyders won silver in the 50m breaststroke, Bell stormed the last 50m for silver in the men's 100m backstroke, and Palmer picked up a bronze in the 50m freestyle.
New Zealand swimmers have now won four silvers and a bronze in Delhi.
Shanks dominated qualifying and produced a lung-busting effort in the final to head off arch rival Wendy Houvenaghel, of Northern Ireland.
Shanks (27) won in 3min 30.875sec, fractionally outside the Games record and 1.262sec faster than Olympic silver medallist Houvenaghel.
You could not wipe the smile off Shanks' face as she circled the track after winning and when hugging the New Zealand team members who greeted her in the middle of the track.
"It's just a buzz," Shanks said soon after singing the national anthem when presented with her medal by New Zealand Governor-General Anand Satyanand.
"It's a bit of relief. Normally, the pursuit's at the start of the programme ... it's been a long few days watching my other team-mates performing.
"Finally race day's come and it feels fantastic to put out a good performance and come away with gold."
Shanks said she felt extra external pressure to break the gold drought but made sure her focus was inward.
"Often you do find your mind drifting a little bit to standing on that dais but I always just try and pull it back. It's just 12 laps and you focus on every single lap," she said.
"You can't get too far ahead of yourself."
Shanks completely dominated the middle stages of the final.
She was slower out of the blocks than her opponent and had dropped 0.761sec off the pace after two laps.
However, she recovered quickly and was in front after 1000m, building steadily on a lead that crept up to 1.335sec at its peak before Houvenaghel made some late but futile inroads.
"The race isn't won in the first 1km so it's important not to go out too hard. Then you've got something to actually race with when it really counts," Shanks said.
It was a repeat of the result when the pair met in last year's world championships final, the only other major international medal Shanks had won before yesterday above World Cup level.
She was fourth at the Melbourne Commonwealth Games in 2006 and at the Olympics two years ago.
The New Zealand men's sprint team was hurting after being beaten by Australia in the final. Their time of 44.239sec could not match the 43.772sec of the winners.
There was a painful moment for Webster, who crashed soon after pulling up the track to complete his leg of the race.
- Daniel Gilhooly
