Anderson thrilled the rain-soaked crowd at the last event on weather-challenged Cypress Mountain as he raced through the dense fog and squeezed past Austria's Benjamin Karl to win.
The Canadian started with a slight time deficit after the first run of the final but made up ground coming down the course and finished a few board lengths ahead of Karl.
After crossing the finish line Anderson looked back, realised he had won and screamed as he pumped his arms in the air with the audience, including his daughters holding a 'Go Papa Gold' sign, going wild.
"Pretty hard to beat, eh? Olympic gold at home," Anderson said. "Today's the day and what tops it off is that my little girls were here to watch it. I hope they remember it.
"I'm sure they were just cheering because it was their dad, not because their dad was doing well. I think that's the best part of the day -- having the girls there and having them be just as proud of me if I'd had a bad day," he said, his voice breaking as he turned aside and tried to hold back tears.
Anderson, the 2009 world champion who runs a blueberry farm with his wife in the off-season, showed none of that emotion when he was flying down the slick, icy course.
"I had so much time to make up and in these conditions it's virtually impossible," said Anderson, who started the second final nearly a second behind Karl.
"I just thought, a true athlete thrives on adversity. So I tried to be a true athlete."
The fog was so thick spectators could not see the course less than 40 metres in front of them. But the hundreds of plastic poncho-clad fans who braved elements ranging from hail to torrential rain waved their red mittens when Anderson won.
Sno-Cat drivers at the top of the mountain honked their horns when they heard Anderson had won and the crowd chanted "Jasey Jay, Jasey Jay" and rang cowbells as he got his medal.
France's Mathieu Bozzetto won bronze after beating Russian Stanislav Detkov in the small final.
Adam Mcleish finished 24th in qualifying, he was the 52nd and final British athlete to compete at the Games.
He said: "I’m pleased I had two clean runs as it’s pretty hit or miss in our sport. I think it’s cool that so many people came out to support in this terrible weather. It’s been fun."
Place of birth: Montreal, Canada.
Residence: Mont-Tremblant, Canada.
Best previous Olympic result: Fifth, 2006 Winter Olympics, snowboard cross
Gold, 2009, 2005 World Championships, PGS
Gold, 2005 World Championships, parallel slalom
Gold, 2001 World Championships, giant slalom
4x Champion, 2003/04, 2002/03, 2001/02, 2000/01 World Cup, overall
2x Champion, 2005/06, 2001/02 World Cup, snowboard cross
Anderson started skiing at 13 and then progressed to snowboarding. He made his debut for Canada in 1994.
His family enjoy outdoor activities in their mountain property and Anderson was introduced to snowboarding by his brother Jayme Jay.
The 34-year-old, who is fifth in this year's overall World Cup standings, operates a blueberry farm with his wife in the off-season.
The father of two has worn the same ski socks throughout his career.