With the U.S. national debt ballooning to over $35 trillion, analysts are starting to question whether traditional investments, like Treasury bonds, can still provide stability. The answer, according to Bank of America’s latest report,

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.

Indeed, with lingering concerns over US funding needs and their impact on the US Treasury market, the yellow metal may become the ultimate perceived safe haven asset. As spending and debt climb globally,