Is wood more dense the gold?

Density= Mass/Volume

If we insert arbitrary figures ...

Block 1 Volume 40 cubic cms [arbitrary]

Block 1 Mass is less than Block 2 so 39 gms

Block 2 Volume is less than Block 1 so 39 cubic cms

Block 2 Mass 40 gms [arbitrary]

D1 = 39/40 = 0.975 grams/cubic cm

D2 = 40/39 = 1.0256 grams/cubic cm

It's clear therefore than inserting extra matter [mass] into the same volume or a lesser volume results in a higher density.

The same holds true where mass remains constant and volume is altered. Greater volume = Less Density and vice versa.