What is Open Interest (OI) in Gold Derivatives?

1. Why OI Dictates Trend Quality

Unlike trading volume, which measures intraday turnover, Open Interest reflects capital commitment. When Gold prices rise alongside expanding Open Interest, it proves that new money is entering the market to initiate fresh long positions—signaling high trend conviction.

2. 1% Dynamic Deadband Threshold

To eliminate weekly noise when Open Interest moves by only a few hundred contracts, AurumGamma applies a dynamic 1% Deadband Threshold based on total Gold Open Interest:

$OiFlatThreshold = TotalGoldOpenInterest * 0.01

• (OI EXPANDING): 1-week OI change exceeds $+1%$, confirming strong capital inflow.
• (OI CONTRACTING): 1-week OI change falls below $-1%$, indicating profit-taking or liquidation.
• (OI FLAT): 1-week OI change remains within the $pm 1%$ threshold, indicating position rotation without net capital expansion.

On the report dated 2026-07-21, total Gold Open Interest stood at 383,368 contracts with a 1-week change of -321 contracts—falling within the 3,834 threshold and correctly evaluated as (OI FLAT).