When I try to plot a graph on GNU Octave, and try to use plot, it gives me the following output
set terminal aqua enhanced title \"Figure 1\" size 560 420
The following worked out for me
Uninstall any existing gnuplot on your OSX
brew uninstall gnuplot
Install gnuplot with either X or X11
brew install gnuplot --with-x
Finally, set the GNUTERM to X11
setenv("GNUTERM","X11")