What model Jag are we talking about?? In general terms there should be a wire going to the in tank sender assembly, probably green/black. This wire goes to the gauge, may turn green/red through a connector on the way. There is another wire from the voltage regulator to the gauge. The tank is grounded through the bolts generally, as is the fuel pump. Questions to ask to narrow down the fault,
1 Is the temp gauge acting up as well?? They share the voltage regulator so if it goes bad both should act up.
2 Is the correct wire hooker to the sender unit? It's normally a small circular plate on the tank top with a connector.
3 Does it work ok if the sender plate is grounded with a wire to the car body??
4 Is the sender even working?? If you remove it, ground the base plate and move the float by hand, does the gauge follow??
5 The temp gauge and the fuel gauge of that age are usually the same thing inside, if you swap the leads, does the problem follow??
6 Is the gauge case grounded??
These should help narrow down where the problem is.