Capital made of gossip — PC covered in shame (6,4)

'capital' is the definition.
(capital of Panama)

'gossip pc covered in shame' is the wordplay.
'gossip' becomes 'ana' (I have seen 'literary gossip' mean 'ana' so perhaps 'gossip' could also mean 'ana').
'pc' becomes 'mac' (I've seen this before).
'covered in' means one lot of letters goes inside another.
'shame' becomes 'pity' (synonyms).
'ana'+'mac'='anamac'
'anamac' going within 'pity' is 'PANAMA CITY'.

'made of' is the link.