twilight serenade Lyrics

Lyric discussion by krm 

Cover art for twilight serenade lyrics by Jason Myles Goss

I think he is at a friends funeral.
In the first four lines it seems he is with his friends toasting the person who passed. He is speaking figuratively when he says 'I can hear you breathing' and the picture on the wall would be the memorial at the funeral or wake.
I think the person killed himself because he was in love with Alice and he got caught emotionally. They are dressed in black and white, typical funeral attire. The man's ghost does not want them to follow. He is going back to the dead man's state of mind before he killed himself 'you were walking on a tight rope but you were too young to care.

I think the song is basically a eulogy for a lost friend.