The victory saw New Zealand exorcise recent demons after exiting in the semi-final stage of the 2012 and 2016 Olympics, in addition to the 2014 Commonwealth Games in Glasgow - the latter two at the hands of Great Britain and England respectively.
The semi-final contest ended goalless as the two teams did battle for a place in the gold-medal match, with the game going all the way to penalties on the Gold Coast.
The goalkeepers were on top in the shootout, with none of the opening four penalties proving successful until Hannah Martin opened the scoring at the fifth time of asking.
Stacey Michelsen was unfazed by the failures of those who had gone before her, confidently racing towards goal before picking out the top corner to send her side into the gold-medal match.
England will now face the loser of the other semi-final between Australia and India for bronze, while New Zealand will take on the winner of that match for gold.