Loelling, the current World Cup leader, clocked an overall time of 2:35.35 to take gold, with compatriot - and defending champion - Tina Hermann taking silver, 0.25 seconds back.
The bronze medal was taken by current Olympic champion Lizzy Yarnold, who finished 0.73 seconds behind the winner, having taken 18 months out of the sport before the start of this season.
Victory sees Loelling improve on the silver medal she won in 2015, having led after the first heat before the second run was cancelled due to heavy snowfall.
Watch: How Dom Parsons won Team GB's first medal
Great Britain's Yarnold was fourth heading into Saturday's racing, but after recording the fastest run in the third heat moved into third, where she remained until the end.
"I'm lost for words right now," said Loelling. "It feels great.
"I didn't expect to win, though I had perhaps hoped a little bit.
"But after the last race here, my goal was definitely to get a medal."
Hermann added: "I haven't lost the title, it's more like gaining a silver medal.
"I am delighted to have done so well this season. Jacqueline is just in incredible form. It was already pretty clear that it would be really, really tough to beat her here." Sportsbeat 2017