It could most certainly be a bad or stuck thermostat, but on a 1997 model, your water pump may be gone (or not circulating enough coolant).
This is why its only heating up while in traffic - there is no airflow cooling the fins of your radiator from moving at speed.
I would check this out - WHILE ENGINE IS COLD - Start the engine and then remove the radiator cap - you should see coolant circulating from the movement of the water pump. Let it run 5-10 minutes to see if the thermostat will open - if it does open, your temp gauge should come down from the opening of the thermostat
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