OPEC's most recent monthly report says that global oil demand is weakening, forecasting it to be slightly above 84.5 million barrels per day - around half a million barrels per day lower than the current Wall Street consensus.

Try telling that to the markets. Oil hit a record high today, sitting at $70.88 on worries over Iran's nuclear enrichment program.

The UN Security Council will meet in Russia later this week to discuss the escalating tensions between Iran and Western governments. Oil traders fear that possible trade sanctions will disturb exports from Iran, the world's fourth biggest oil producer, pushing prices up even higher.

And we all know that high oil prices means high prices at the gas pump - and we haven't even entered the prime-driving season yet.

While skyrocketing oil prices is bad news for nearly everyone, gold bugs are feeling pretty good about it.

"The gold market is fulfilling the promise that gold bugs like myself have touted for years: a safe haven in uncertain times," Kevin Kerr told MarketWatch this morning.

The yellow metal continued its bull-run today, going above $620 an ounce, a level not seen in 25 years.

"The gold market is at a precipice here around $620, the next move by Iran could signal a blast-off for gold - or an immediate correction," continued Kevin.

Bill Bonner is the President of Agora Publishing.  For more on Bill Bonner, visit The Daily Reckoning.