In arguably the most incredible netball test of all time, the trans-Tasman sides took turns at throwing away winning chances as tension and exhaustion gripped like a vice, until New Zealand goal attack Maria Tutaia finally put the dagger in.
Coach Ruth Aitken said self belief had been the key to winning.
"I think probably in the end it was belief and where this team has come to," she said.
"They absolutely believe in each other and in the end it's just sheer doggedness really. They did not want to give it away, I felt very proud."
New Zealand had scored five unanswered goals early in the final quarter to scorch to a 40-33 lead, only to go into panic mode in the last two minutes and seemingly throw away the gold medal, then levelled at 58-58 in the last second of extra time.
Tutaia was magnificent in the clutch, landing a series of crucial shots until the final one brought a boilover of emotion and relief for New Zealand -- and grief for Australia.
Tutaia feared she might not be able to carry on much longer, she told NZPA.
"I'm just so stoked, my calves were cramping up, that's why I was getting a bit worried," she said.
"I'll tell you what, I can't even talk. We all came together, we knew it was going to be a game like this, I think the game went more than an hour-and-a-half."
Replacement Australian goal shoot Catherine Cox and New Zealand flagbearer Irene van Dyk, who tried a high-risk long range shot, both had chances to seal it in the final minute of ordinary time, and both missed to leave the match alive.
That meant two seven-minute periods of extra time, and when that couldn't separate the team, a sudden death spell with the first side opening a two-goal lead getting the gold.
Van Dyk heaped praise on her shooting partner Tutaia, saying she had been struggling, so they had switched roles.
"She had a sweet shot today. She couldn't make any mistakes," van Dyk said.
"She had cramps so she just asked if she could stay in for a little while and I did more of the running."
New Zealand had trailed for much of the game as Australia applied a mid court stranglehold, but inspirational halftime changes by coach Ruth Aitken pulled the gold medal out of Australia's clutches.
On came former beach volleyball international Anna Scarlett at wing defence as well as Liana Barrett-Chase at wing attack and suddenly Australia had the skids under them.
It was a cameo by Scarlett, who left again in the final quarter, but it was a telling one, as her long reach derailed several Australian attacks.
Australia had led 10-9 after the first quarter, 23-20 at halftime, trailed 33-35 after the third quarter, then the Silver Ferns scored five unanswered goals to open what seemed a winning 40-33 lead.
But no, this was Australia, and they weren't going away.
On came former skipper Cox at goal shoot and with six minutes left the gap was back to two, with the "Kiwis, Kiwis" chant from the stands urging on New Zealand.
Both sides had started nervously, with the first quarter riddled with turnovers and both sets of shooters either missed or had shots deflected away.
