Steve, I have exactly the same set-up on my 34. Bill is right it has to go to the ignition switch. But since it was almost always an addition on all these boats, it is not part of the original wiring diagram.
Gauge works you say so I would put it back in place, then since it is the shortest wire and easiest to work on I would check the negative circuit from the gauge to the breaker. If you have continuity there, then obviously your problem lies with the hot wire coming from the switch. If connection at the gauge looks good, undo the switch panel cover inside the stern cabin and check it at the switch. You might find some corrosion there. Clean and try again. If it still doesn't work, then use a long wire and go direct from the switch to the gauge.
Tedious but easy to do. Good luck