Historically, investors have called the dollar index, United States treasury bonds, and even gold the main safe havens in the global economy when and if trouble arises. However, this common knowledge has attracted many buyers positioning themselves in these areas ahead of what could turn out to be a volatile stock market.

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, 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."

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.

U.S. Treasury bonds have long been seen as the gold standard in safe investments, backed by the full faith and credit of the federal governm..|News Track