First place to look is the earth on the gauge. This is earthed by a wire with a tag under one of the nuts holding the gauge and from memory goes onto a stack of tags under one of the other gauges, and then to an earth on the firewall. It may simply be a loose nut.
You can often confirm this is the problem if the reading changes when you switch the instrument lights on or off - if this affects the gauge reading then the gauge earth is certainly the problem.
Other possibilities are the sender or the gauge as you suggest, but neither are prone to problems - much more likely is a wire rubbed through the insulation and intermittently shorting to earth. The tank earth can also be a problem, although I think this would show low readings not high.
John
JDNSW
1986 110 County 3.9 diesel
1970 2a 109 2.25 petrol
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