As the gold price continues to rise at an unprecedented rate of over $3000 per ounce, everyone's attention is focused on gold. However, investors should not overlook silver, which is currently at a critical resistance level as a bank announced a significant increase in its year-end target.

Carsten Fritsch, a commodity analyst at Commerzbank, stated in his latest precious metals report that he has raised his year-end silver price target to $35 per ounce, higher than his initial forecast of $33.

At the time of this bullish outlook, spot silver prices tested and broke through the resistance level of $34 per ounce, hitting a five month high of $34.208 on March 18th.

He said, "Silver prices are just one step away from the 12 year high of $34.846 set nearly 5 months ago. Given the continued rise in gold prices, silver prices may soon reach this level

Fritsch also raised his year-end gold price target to $2850 per ounce, higher than his initial estimate of $2650 per ounce.

He said, "Silver will gain some advantages over gold, and the gold to silver ratio will drop to 81, consistent with the five-year average level

Fritsch pointed out that while gold prices are strengthening, silver is still receiving good support due to strong industrial demand.

He said, "Due to record high industrial demand, the silver market has been undersupplied for four years, and according to data from the Silver Institute, it may face another severe supply shortage this year

Despite the strong momentum of gold prices, Fritsch warns investors that gold prices may rise too quickly. He pointed out that it took less than 5 years for the gold price to surge by $1000 to a record level, and it took 12 years to surpass $2000 after breaking through $1000 in March 2008.

He said, "Therefore, we continue to expect gold prices to decline this year. This assumption is based on expectations that the Federal Reserve's interest rate cuts may be lower than the market's current expectations. In addition, record breaking gold prices are expected to suppress physical demand, which is already reflected in data from Asian countries

Fritsch added, "However, as more ETF investors and potential speculative traders re-enter the market, the risk of gold prices continuing to rise still exists, at least in the short term. If the Federal Reserve increases its interest rate cuts despite rising inflation risks, gold prices may continue to rise.