Yes that does seem like intermittent electrical.
If it was the mechanical scenario (gauge remains zeroed out from startup until hit, then works fine afterward) (worse in cold ambient temperatures), that is caused by dried up lube in the needle mechanism. Requires careful removal of the needle, and a mini-drop of low viscosity oil (preferably w/ teflon, like Tri-Flow) into the axial mechanism. Think hypodermic.
The reverse-reading fuel gauge is from a mismatch between the sender and gauge types. Evidently Volvo changed methods, I forget which model year.
My fuel gauge never worked so have been zeroing out the trip odometer at each fill up and making sure to fill again before 500 miles. Works for me.
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1985 744 gle d24t
1985 745 gle d24t
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