The Black Sticks bore the full brunt of a relentless performance from Argentina in the World League hockey final.
Argentina has hammered New Zealand 5-1 to win the gold medal in front of a capacity crowd at the newly-named Luciana Aymar Stadium in Rosario.
The home team scored twice in the second quarter with Maria Granatto opening Argentina's account shortly after the resumption, before Maria Campoy drilled in the second goal in the 29th minute off the back of a penalty corner.
Black Sticks skipper Anita Punt pulled one back for New Zealand with a stunning drag flick in the 34th minute.
But the home team soon restored their two-goal buffer with Campoy picking up her second goal, after Delfina Merino drew Rutherford out of position before slipping it back to Campoy who fired home.