If it is not an instrumentation problem then you have to assume the coolant is heat cycling. It could be because the cooling fans are not coming on due to the temperature switch, fans or relay. This would explain why the temperature increases when you are stopped and decreases when you are accelerating and air is moving over the radiator.
Check the thermostat or if there's any leak on you radiator or hoses..
Possibly your gauge may be faulty or could be the sending unit
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