The government on November 8 announced the demonetisation of 500 and 1,000 rupee notes to flush out black money.
Symbol: GOLD| Contract: Dec, 2016| Category: Bullion
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Spot gold was up 1.05 percent at $1,195.26 an ounce by 0252 GMT. The metal marked its lowest since Feb. 8 at $1,171.21 per ounce in the previous session.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, led by gains in Hong Kong and Taiwan.
Prime Minister Narendra Modi said he was confident that India would shine like gold after the government's decision to demonetise high value currency notes that would curb unaccounted wealth in the country.
Commerce and Industry Minister Nirmala Sitharaman has pitched for 'restriction free' imports of gold to help gems and jewellery exports and also discourage smuggling.
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