NEW YORK (MarketWatch) -- Gold futures fell Thursday as investors digested fresh developments in Washington surrounding the government's proposed plan to help resuscitate the U.S. financial sector.

Key leaders of the House and Senate committees that oversee Wall Street announced Thursday that a "fundamental" bipartisan agreement has been reached on principles for a $700 billion rescue plan to patch the shattered financial sector.

"Until the bailout proposal becomes law, investors will remain reluctant to take big positions in a number of commodity complexes," said Edward Meir, a commodities analyst at futures brokerage MF Global.

Gold for December delivery fell $13, or 1.5%, to end at $882 an ounce on the Comex division of the New York Mercantile Exchange.

Several lawmakers Thursday openly predicted that the unprecedented plan would be approved by Congress, but they remained mum on specifics of the plan, which has to go back to their leadership and the White House for ultimate approval. See full story.

In a sobering speech to the nation late Wednesday, Bush said major sectors of the U.S. financial system are at serious risk of disruption.

If the plan is enacted, gold prices could rebound, analysts said.

The plan "will continue to undermine the value of the U.S. dollar and further support a flow of capital out of paper into hard assets, into gold and silver," said Peter Spina, president, Gold Seek LLC.

The dollar turned lower Thursday, limiting commodities' losses. A weaker greenback tends to push up dollar-denominated commodities prices. See Currencies.

"Given the weaker U.S. economic and dollar outlook, increased safe-haven demand and improved technical picture, gold is in a strong position to push higher," said James Moore, an analyst at TheBullionDesk.com

Also in metals, platinum for October delivery lost 2.8% to $1,184.20 an ounce, while December palladium dropped 4.1% to $242.45 an ounce. December silver fell 1.2% to $13.28 an ounce, with December copper rose slightly to $3.13 a pound.

In spot trading, the London gold-fixing price 38099902, used as a benchmark for gold for immediate delivery, stood at $888.50 an ounce Thursday afternoon, down $7.50 from Wednesday afternoon.

On the equities side, the Amex Gold Bugs Index HUI, lost 2.9% to close at 336.11 points.