I don't think there's any cause for concern until about 220 degrees. If the gauge shows one temp, you can be sure it's hotter or cooler in some other part of the engine. Besides, your oil is usually running at 245, I believe. I addition to that, coolant should have boilover protection to 265 degrees, done mostly by having a functional radiator cap @ 16 psi.
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Capri306, Moderator, The Mustang Works Online
1979 Mercury Capri, 5.0L -- C4 -- 2.73
1987 Mustang LX Notch 