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When you throttle up, the oil level drops slightly in the tank. At anything other than idle, it splorts back into the top of the tank intermittently, probably disrupting the gauge. That's why you only check the oil on the gauge at hot idle, after the level normalizes.
To check the gauge, read the dipstick. The two should correlate closely, high, middle & low. If not, my guess would be the 47 year-old sending unit.
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