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2002 outback legacy temperature gauge hot but engine cool

TXNWV
in 1990 to Present Legacy, Impreza, Outback, Forester, Baja, WRX&WrxSTI, SVX

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I have a 02 outback with just over 130000 miles and the temperature gauge is reading hot but the engine is cool. The heater is fine no over heating smells and when I idle the temp drops to normal. It is in the low 30s and forecasted to get colder. I think it is the thermostat but not sure.

Do you mean the radiator is cool or the engine? Get yourself a code reader to see what the actual temp is. 

 

After that It can be a stuck thermostat, bad cap, clogged radiator. 

Coolant level is good?

 

Thermostat would be next on my list. Subaru OE or an OE equivalent type only. The cheapo stats don't work right.

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