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My '86 does the similar thing-- occasionally reads high for no reason at all. Had thermostat replaced, no difference. coolant checked etc. Since winter's on it's way those are good things to do but likely not solve your problem.
I would just reach under my dash up over the ignition "box" and twiddle with the wires going into instrument cluster and separate the wires from each other a little and the high reading would go away . . and occasionally get weird instrument displays in the process. I suspect I have a small voltage short or leak in the wires going into cluster as I once even felt a mini shock there.
tape wires? do the compensator board as several suggested??? (I'd like Don's pics if avail...) This problem caused me a lot of anxiety and wasted shop visits with little solution. A Swedish car specialist said he could fix the electrical problem for 60 bucks.. some here says it's a little time, soldering and a few pennies. By then I would just tweek the wires a bit.... however, what I thought was a false reading was once real, I sprong a leak on my water pump. Luckily I was only driving a short distance to get oil for an oil change... and found a big puddle of coolant under car there.... if I'd been driving a long distance and ignored the high readings ... disaster might have struck my sound engine. So it's worth fixing the gauge.
The best thing done though was having a mechanic check the temperature of engine while running with a thermo. gun which literally reads and tells the heat of components of cooling system. Without that you should at least tell if your thermostat is working by seeing when it "opens" (literally). Start your car when it's cold, feel the upper hose going from engine to radiator, which will be cold. Drive for a mile and a half about and minute and a half (very approximately) with heater on. You start to feel just a little heat coming from engine, see if thermo gauge is heating higher area of gauge or stopped climbing, stop, leave engine on, get out and check engine, feel upper hose again. Should be getting hot. Definitly hot if your gauge is reading high. If not, change thermostat for sure.
I am guessing though you have a small electrical problem too common to 240 Volvos.
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