Having led 2-1 and 3-2 at Glasgow Green, England were pegged back to 3-3 in regulation time by Simon Child’s equaliser.
But Bobby Crutchley’s side held their nerve in the shoot-out to prevail 4-2 and clinch a second hockey medal in little over 12 hours.
England’s women had to settle for silver after losing on penalties to Australia following a thrilling final on Saturday night.
England’s men – captained by Doncaster’s Barry Middleton in their number –had been beaten to bronze on flicks in the third-place play-off in Delhi four years ago.
Child opened the scoring for New Zealand but Alastair Brogdon soon equalised from close range and a penalty corner strike four minutes before half-time from Ashley Jackson put England in front.
Another penalty corner from Jackson in the second half restored England’s lead after Andy Hayward had levelled for New Zealand, but Child’s late effort –through the legs of England goalkeeper George Pinner – took the game to a shoot-out.
Pinner’s save from Blair Hilton swung the advantage England’s way and a miss from Child meant the outcome rested on Simon Mantell’s shoulders.
He was fouled by New Zealand goalkeeper Devon Manchester and, after a failed video referral, England were awarded a penalty stroke. Jackson emphatically scored, before being mobbed by his team-mates.
In the gold medal match, Australia cruised to a fifth straight Commonwealth title with a 4-0 triumph over India in what was a repeat of the 2010 Delhi final.
Australia defender Chris Ciriello scored two drag flicks in the first half and completed his hat-trick early in the second half, with Eddie Ockenden sealing matters 20 minutes from time.