Gold futures dropped for the fourth straight day on Friday following a decline in crude-oil prices which reduced the demand for the precious metal.

Gold for December delivery fell $11.60 at $783.70 per ounce on the New York Mercantile Exchange in late morning trading. On Thursday, gold futures fell $5 to finish at $795.30 an ounce. It reached a 27-year high of $848 an ounce on November 7.

Gold spent the majority of Thursday straddling the psychological $800 level as traders looked to both oil and the dollar for direction, said James Moore, an analyst at TheBullionDesk.com, in a report today.

That theme looks set to continue today, although month-end profit-taking may see the metal lose some further ground, potentially testing back to last week's low around $772, Moore added.

Crude oil fell below $90 a barrel for the first time this month. The Organization of the Petroleum Exporting Countries (OPEC) will meet in Abu Dhabi next Wednesday with many participants expecting the cartel to boost output to help counter record-breaking prices.

There may be a further temporary correction [in gold prices], but the overall outlook for gold remains positive as a hedge against oil-price-induced inflation, but also as a safe-haven investment as the outlook for world growth remains uncertain, Analysts at Action Economics said in a note to clients.

Gold Precious metal OPEC