The 29-year-old mother of one from Ulaanbaatar finished the final with 624.1 points, just four off the world record of 628 set by German Beate Gauss at the world championships in Spain this month.
"Our previous best was a team silver four years ago, so this is really, really special," Chuluunbadrakh said. "More so, since this is also my best score. (Indian Shooters Disappoint on Day 5)
"It is too early to think of the future because the Olympics is still two years away, but I want to perform better in next year's World Cup. (Day 5 Updates)
"Hope this medal will inspire more women to take up shooting in Mongolia."
As the Mongolian woman, who finished 10th in Guangzhou four years ago, celebrated her title, a tight finish ensued for the silver between Nur Binti Taibi of Malaysia and Eum Bit-Na of South Korea.
Both scored 620.6 and had an identical 39 inner 10s, but the Malaysian's superior final series score of 103.5 placed her second.
Eum, whose final series score was 102.6, however had reason to smile as the Korean women claimed the team title ahead of second-placed China and Malaysia.
Eum, Jeong Mi-Ra and Na Yoon-Kyung scored a combined tally of 1855.5, with China on 1854.1. Malaysia finished third on 1853.6.
South Korea also added the team title in the men's 25m rapid fire pistol event when Song Jong-Ho, Jang Daekyu and Kim Jun-Hong shot a combined score of 1747 points.
China took the silver medal and Vietnam won the bronze. The individual final will be held later on Wednesday. With 19 titles decided so far in the 44-event shooting competition, China have won 10 golds, South Korea five and India, Iran, Mongolia and Kazakhstan one each.