Vice governor of the People's Bank of China (PBOC) Yi Gang said Wednesday that the country's gold reserves now stand at 1,054 tonnes, adding that a massive increase is unlikely in the future.

"We need to take into account both the stability of the market and gold prices," Yi said when asked about whether China will increase the size of its gold reserves at a press conference held on the sidelines of the legislature's ongoing annual session.

As the world's largest gold producer and importer, China produces about 400 tonnes of gold annually, as well as imports 500 to 600 tonnes of gold every year, according to Yi.

Increasing the reserves will elevate gold prices, which will force people to pay more for gold consumption and investment, he said.

"Compared with China's 3.3-trillion-U.S.-dollar foreign exchange reserves, the size of the gold market is too small," Yi said, rejecting speculation that China will diversify its foreign reserve investments.

"More gold is always an option, but that requires profound judgment," Yi added.