the over flow tank sucks fluid when engine drops to cold temp at night.
takes a good cap and tubing to do that.
it also can collect hot fluid if the head gasket blows.
yours is cold and that is good.
first, did you ever have signs of real overheating or just the needle.?
coolant blasting into overflow tank, or steam?
Knocking of engine (detonation , pinging due to too hot engine) can rattle. ?
ok the gauge can be bad the wires and the sender
also the sender can lie if the fluid is too low. ( it will cycle up then down then up...)
no sender works correct sitting in air. so it will lie if fuid drops 4 inches below thermosat unit.
each day in the morning check the level of the radiator directly.
is it full ?, no then keep it that way each day.
if that keeps happening (the dropping), then you have a leak or a bad head gasket.
look for leaks on the ground , at Pump, below cab heater box.
all can bet tested , guage, wires, sender,
and engine, and rad.
cool water was dripping from what , you did not say.?
please clarify that drip statment.?
do you mean the coolant over fill tank was cracked and leaking.?
be aware (usa ,?) you can buy a cheap IR thermo gun from Harbor freight for $10
and never guess again, the remainder of your life.
point and shoot, instant answer, cold, hot or too hot.
cool huh?
I point this gun at wife, learn how to avoid , rolling pin. LOL.
just point it at the thermostat housing, and cheer, gee my Gauge in the dash jiving me.
1/2 problem solved in under 5 mins.
mine reads 170F now.
over-heating-why?
never trust a dash guage, they are junk. and subject to (above and below)
not until you know it is working and have proven it with my IR gun.
this gauge can have 2 bad grounds , one at the gauge and one near the tank.
but id not worry the guage until you know the engine and coolant loop are AOK.
the old mercury thermometer test has worked for 100 years.
(but the procedure is ,can i say drippy)