The 29-year-old Briton featured in the first round proper for the first time last year but Argentine Gonzalez ensured there would be no repeat as he kept his own dream alive with a 6-3, 6-4 victory.
Ward, beaten in straight sets by Novak Djokovic at Wimbledon, failed to find a way back after losing his serve and falling 3-0 behind in the first set.
Gonzalez served the set out with the minimum of fuss and then broke Ward in the opening game of the second, only to immediately lose his own serve.
Another break apiece followed before Ward crucially lost his serve again in the seventh game. Gonzalez held his nerve in the next game and after Ward made it 5-4, took his third match point to advance to the next round.