With economic optimism being fomented by the sharp and ongoing slide in the energy complex, it wasn't surprising to see the US Dollar rise and for the selling pressure to intensify in the gold market in this morning's action. In fact, the combination briskly declining oil prices, a generally rising Dollar and higher US equity prices really seems to be capable of pushing out another layer of flight to quality longs in gold. Clearly the market failed to benefit from early concerns of potential supply side issues from South Africa and just ahead of mid session at least some minor production losses were being confirmed. However, the gold market just doesn't appear to be in a position to garner support from physical supply issues.