Crossword Genius

Capital is new with fool's gold (6)

Ross

I believe the answer is:

nassau

'capital' is the definition.
(Nassau is an example)

'new with fool's gold' is the wordplay.
'new' becomes 'n'.
'with' is a charade indicator (letters next to each other).
'fool's' becomes 'ass' (ass is a kind of fool**).
'gold' becomes 'au' (Au is the chemical symbol for gold).
'n'+'ass'+'au'='NASSAU'

'is' is the link.

(Other definitions for nassau that I've seen before include "Bahamas cap." , "city" , "Bahamian capital" , "Caribbean resort" , "Port of the Bahamas" .)

I've seen this clue in The Telegraph.
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