Hussain gave an impressive performance of clever footwork and brute strength to take Welson out by a fall in the second session of the 55kg freestyle final.
"We don't have the proper Greco-Roman coaches, but still we went for it and for the country's sake we got the silver in the Greco-Roman and now gold in the freestyle catergory as well," Pakistan's head freestyle coach MH Omar said.
Pakistan had not taken a Games wrestling title since they won four golds in Edinburgh 1970.
"Like Sushil Kumar is for India, now the same Azhar Hussain is for Pakistan -- a champion," Omar said.
Hussain had earlier disappointed the partisan crowd by beating India's Anil Kumar in a tense quarterfinal. Kumar gave the loyal home support something to cheer about when he took the bronze, beating Craig Pilling of Wales 3-0.
He said: "Bronze is good but I wanted gold. So I'm not at all happy and satisfied. I prepared for gold at these Games for at least four or five years.
"Last night I didn't get adequate sleep. That's why I was tired and couldn't perform 100 per cent. I wasn't feeling very well. I had some stomach problems. I felt like throwing up all the time."
Muhammad Inam of Pakistan won his team's second Commonwealth Games wrestling title within an hour on Sunday - after the country had gone 40 years without a gold.
Inam was outplayed and overpowered by Kumar in the first session but, spurred on by teammate Azhar Hussain's victory in the 55kg final, the big wrestler found the inspiration to overcome the favourite and the chants of a partisan home crowd.
Inam won the next two sessions by the narrowest of margins to take the bout 4-3.
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