China reported an increase in its gold reserves for the second month in a row, adding to its reserves again after its first purchase in more than three years.

The People's Bank of China increased its reserves by 30 tons in December. That follows November's addition of 32 tons and brings the country's reserves to 2010 tons, Bloomberg wrote.

According to the World Gold Council's Demand Trends Report, bullion purchases by central banks hit a record high in the third quarter of last year at nearly 400 tons, with only a quarter going to publicly listed entities. China's disclosure of gold purchases sheds light on the identity of these mystery buyers. Market observers speculate that Russia could be another buyer.

Previously, China has not often reported its reserves. The addition of 32 tons in November was the first reported inflow into the country since September 2019. Prior to that, the last previous increase was in October 2016.

According to the People's Bank of China, the country's foreign exchange reserves rose $10.2 billion at the end of December from the previous month to $3.13 trillion at the end of last month.