Russia's Natalia Paderina won silver and Nino Salukvadze of Georgia bronze in the women's 10m air pistol event.
They finished behind China's Guo Wenjun, who took the hosts' third gold.
"This medal is good for Georgia, especially during times like this," Salukvadze said after sharing an emotional embrace with her rival.
The competitors - who were once team-mates in the former Soviet Union - hugged and kissed each other on the cheeks after the dramatic final in the Beijing shooting range hall.
"I am very nervous today. It's very difficult for my people," said the Georgian.
"If the world were to draw any lessons from what I did there would never be any wars.
"We live in the 21st Century, after all," she said, wiping tears from her eyes as she put her pistol down after her final shot of the event.
"We shouldn't really stoop so low to wage wars against each other."