Better

The direction the needle points seems to be determined by the proximity of what I'm now thinking of as The Evil Magnet. When The Evil Magnet gets too close, it pulls the needle the wrong way. When it's at a distance, the needle can swing true and actually provide useful direction.

When the needle starts spinning weird, just close your eyes, pay it no attention, and try to remember where it was pointing before it was interfered with.

And wait for The Evil Magnet to go away.