Bank of America warns that gold may be the last true safe haven as the U.S. national debt climbs to unprecedented levels, casting doubt on the stability of traditional assets like Treasury bonds.

Bank of America strategists see 11% upside for gold by the end of next year as the Treasurys are threatened by soaring US debt levels.

Gold at record highs as investors flock to it as safe haven asset amid rising inflation expectations and Fed's policy shifts.

The BofA analysis, authored by commodity strategist Michael Widmer, says rising US debt levels could be adding to gold's shine. The US is not the only net borrower among the countries of the world, but with its national debt now exceeding 120 percent of gross domestic product, investors may begin to question the security of Treasury bonds.

Bank of America analysts argued in a note Thursday that gold is emerging as a more attractive safe-haven asset than government bonds, driven by fiscal concerns and global economic dynamics. While falling real interest rates typically boost gold prices,

"Indeed, rising funding needs, debt servicing costs and concerns over the sustainability of fiscal policy may well mean that gold prices could increase, if rates move up."

Despite the long-standing belief that U.S. treasuries are a solid place to store money, that notion could change as governments take on more debt. “Gold appears to be the last s