You don't want to match the gauge on the label, that's just to show what weight range the yarn falls in. You're right to not go up in needle size to try to match the pattern gauge. If you like how the knit looks at the gauge you have, then use the larger size. You might also wash and block your swatch (you don't have to cut the yarn, just BO and leave it attached) to see if the yarn stretches a lot or shrinks or whatever. Also, make sure your swatch is larger than 4".
sue- knitting heretic