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This is normal operation for the pre 2001 (non-buffered temp guage) cars like yours, if the following is also true :
While idling (or sitting in stop and go traffic) after the car is fully heated up, both radiator fans cycle on (low speed) and off (really off) as the needle hits the right side of the '0' and to the left of it.
The actual position on the gauge may differ from car to car, but mine is similar to yours.
If the fans are not cycling, than the temp resistors may be bad as others point out.
Note that with the A/C running, the fans will always be running at at least low speed and so the temp should only creep up like that under heavy load and then the fans would kick on high at some point.
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