The tone was set for a hard-fought match which swung both ways in the opening set when it took a 16-14 scoreline to finally get the breakthrough, with King taking the lead.
The New Zealander - a bronze medallist in Glasgow four years ago - then took the second set 11-8 to move within one of the gold, but Perry refused to go down with a whimper.
The 27-year-old fought back to win the next two sets and force a decider, and even after falling 4-0 down in the fifth she was still able to respond and draw level once again.
However, King ultimately had too much for the Englishwoman and saw out the match to win gold, with Perry picking up silver and Wales's Tesni Evans claiming bronze.
England do still have the chance to win a squash gold medal with James Willstrop in the men's final later this evening.