Our Methodology Transparency in Gold Price Calculation
We believe in complete transparency - learn how we collect and calculate gold prices accurately and professionally
Last Updated: December 01, 2025
Overview
Our Commitment to Transparency
Zahab Price is an informational website that displays indicative gold prices in the Saudi market. We use trusted global data sources with advanced statistical algorithms to provide an experience close to real market movement.
Data Source
Metal Price API
We obtain gold price data from Metal Price API (metalpriceapi.com), a specialized service for providing precious metal prices from commercial sources and global banks.
What Metal Price API says about their sources:
"Our data comes from commercial sources and global banks, with a greater focus on commercial sources to more accurately reflect live trading activities"
Update Frequency
Base Data
We fetch the latest prices from Metal Price API every minute. This price is the real base price on which all calculations are built.
Live Fluctuation
Between base updates (every minute), we display smart fluctuations every 0.8-7 seconds depending on market activity to simulate real movement.
Smart Fluctuation
Important Disclosure
Why Do We Use Smart Fluctuation?
Metal Price API data is updated every minute. But in reality, gold prices move continuously. To provide an experience closer to the real market and avoid displaying a fixed price for a full minute, we use a statistical algorithm that adds small fluctuations based on actual data.
How Does the Algorithm Work?
Trend Analysis
We use Linear Regression to analyze price trend from the last 60 minutes: upward, downward, or stable
Volatility Calculation
We calculate Standard Deviation for the last 60 minutes to determine the actual price volatility level
Smart Fluctuation
We add small fluctuations that align with the trend and actual volatility:
- Upward trend: 60% chance of increase, 40% decrease
- Downward trend: 60% chance of decrease, 40% increase
- Stable: Small random fluctuation
Convergence to Real Price (Interpolation)
With each update, we move the displayed price by 30% towards the new real price, to ensure it doesn't deviate from the actual price
Fluctuation Frequency by Market Activity
Fluctuation every 0.8 - 1.5 seconds
Fluctuation every 1.5 - 3 seconds
Fluctuation every 3 - 7 seconds
Price Calculation Method
1. Base Price (USD/Ounce)
We obtain the raw gold price (24 karat) in US dollars per ounce from Metal Price API
2. Convert to Grams
We convert the price from ounces to grams:
Price per gram (USD) = Price per ounce ÷ 31.1035
3. Convert to Saudi Riyal
We multiply the price by the dollar to riyal exchange rate:
Price per gram (SAR) = Price per gram (USD) × Exchange Rate
4. Calculate Different Karats
We calculate karat prices based on pure gold percentage:
24K = Base Price × (24 ÷ 24) = 100%22K = Base Price × (22 ÷ 24) = 91.67%21K = Base Price × (21 ÷ 24) = 87.5%18K = Base Price × (18 ÷ 24) = 75%5. Bullion Prices
We add a reasonable profit margin for bullion based on weight (heavier bullion has lower margins)
Why Might Prices Differ from Jewelry Shops?
Profit Margin
Each jewelry shop adds its own profit margin based on location and expenses
Manufacturing and Craftsmanship Fees
Gold items include manufacturing fees that vary based on design and quality
Update Timing
Some shops update their prices only once or twice daily
Buying and Selling Policies
Selling prices differ from buying prices at jewelry shops
Important Tip
Use our prices as an indicative reference to know the general market trend, but always verify the final price directly from the jewelry shop before completing a purchase or sale.
Our Commitment to Accuracy and Reliability
Regular Updates
We fetch base data every minute from trusted sources
Verified Algorithms
All calculation formulas are carefully reviewed and tested
Complete Transparency
We explain our methodology in detail and do not hide any information
Clear Disclosure
We clarify that fluctuations are statistical estimates and not actual trading prices
Important Notice
All prices and information displayed on the "Zahab Price" website are for informational and indicative purposes only. We are not financial advisors and do not provide investment recommendations. Please review the Disclaimer page for more details.