This magic compass does not seem to work normally, as the needle moves completely randomly.

Once per long rest, you can use the compass to cast the locate object spell without any distance limitation, the compass then points to the object you want to locate.

Curse. The compass is cursed. Attuning to the compass curses you until you are targeted by the remove curse spell or similar magic. While cursed, each time you use the locate object spell using the compass, you must succeed on a DC 18 Wisdom saving throw, suffering from a short-term madness for the next minute (p. 259 of the Dungeon Master Manual) on a failed save. The short-term madnesses can be ended with the lesser restoration spell or similar magic.

Notes: Cursed, divination