That kind of a noise coming from the back of the engine is never a good sign. Try putting the car in gear, does the noise get louder or go away? Could be a failure of the transmission front unit (pump) or clutch pack hung up.
Pull the oil filter and drain the contents onto a rag or paper towels. Are there metal shavings? If so probably a spun bearing someplace. Could also be a broken ring scouring the block.
Just for the heck of it loosen all the belts, if the noise goes away, you probably have a bad water pump or idler bearing, sound can do funny things under the hood because there is all kinds of metal for it to bounce off of.
If this is a stick shift, it could also be a bad pilot bearing on the flywheel/crankshaft.
Dave