Your gauge is reading correctly. You should gain roughly 10 pounds of pressure per 1000 rpms. My chiltons says you should have 37psi at 1600 rpms with the 2.5 4 banger. From what you are saying it sounds fine. If you dont have a maintanance manual get one, or two. I have a Haynes and a Chiltons. I find it good to have both of them so I can cross referance what each says to see weather or not the answers jive. Later, Andy 89XJ 4.0 5-speed