Gold futures fall below $1,300

Gold futures on the COMEX division of the New York Mercantile Exchange ended below 1,300 U.S. dollars an ounce Thursday, as a proposed plan to temporarily raise the U.S. debt ceiling helped to draw investors away from the precious metal.

The most active gold contract for December delivery fell 10.3 U. S. dollars, or 0.79 percent, to settle at 1,296.9 dollars per ounce. It was the first settlement below 1,300 dollars since Oct. 1, according to data firm FactSet.

The market demand for the precious metal as a safe haven was eroded as investors were speculating there will be some kind of an agreement between the two U.S. political parties soon to avert a debt default.

U.S. House Republican leaders on Thursday offered President Barack Obama what they called a "good faith" proposal to temporarily increase the nation's debt ceiling and negotiate a budget deal.

U.S. stocks rallied, with the Dow Jones Industrial Average up more than 1 percent as of the COMEX close. The U.S. dollar strengthened against most other currencies, with the dollar index trading at 80.461, up from 80.378 late Wednesday.

Silver for December delivery rose 0.5 cent, or 0.02 percent, to close at 21.896 dollars per ounce.