Gauge should usually show around 1/2 way when at normal operating temperature.
3/4 is high but unless it is in the red it is not over heating, just higher than normal temperature. There probably won't be any steam or anything unless the coolant is boiling.
So are you sure your coiling system is operating ok? Fan clutch? Sticking closed thermostat? Blocked radiator? Radiator cap poor sealing? Hoses? No leaks, even minor ones?
That said, I have heard of gauge problems which could be bad connections, earths in the instrument cluster or the well-known leaking SI battery problem (unlikely on a 318is).