Silver (XAG/USD) prices continued their uptrend for the third straight session, trading around $29.70 during the Asian trading hours on Tuesday.

Prices of precious metals like Silver are likely to be supported by light trading activity ahead of the Christmas holiday.

Additionally, weak US PCE data has eased inflation concerns, presenting a mixed economic outlook, which benefits non-yielding assets like Silver.

However, Silver prices may come under downward pressure as traders continue to assess the Federal Reserve's (Fed) outlook for 2025, pricing in just two interest rate cuts in 2025 after Fed policymakers hinted at fewer rate cuts next year due to a slowdown in the desinflation process.

According to the CME FedWatch tool, the market is now pricing in a nearly 93% probability that the Federal Reserve will keep interest rates unchanged in January, maintaining the current range of 4.25%–4.50%.

Source: FXStreet