New Delhi, March 16 -- Silver prices slipped around 2% on Monday, March 16 even as the dollar softened, with bullion caught between two competing forces. On one hand, a weaker greenback and lower US Treasury yields offered some support to precious metals. On the other, stubbornly high oil prices kept inflation worries alive, which in turn reduced expectations of any near-term interest-rate cuts from the US Federal Reserve.

That tension left precious struggling for direction ahead of the Fed's policy announcement due on Wednesday, where policymakers were widely expected to keep rates unchanged for a second straight meeting. With borrowing costs likely to stay elevated for longer, investor appetite for non-yielding assets such as gold rema...