Friend going around with good gossip (7)
I believe the answer is:
chinwag
'gossip' is the definition.
(I've seen this before)
'friend going around with good' is the wordplay.
'friend' becomes 'china' (cockney rhyming slang, mate is china plate).
'going around' is an insertion indicator.
'with' becomes 'w' (abbreviation).
'good' becomes 'g' (abbreviation).
'china' enclosing 'w' is 'chinwa'.
'chinwa'+'g'='CHINWAG'
(Other definitions for chinwag that I've seen before include "Conversation (slang)" , "Informal chat moving lower jaw" , "Informal conversation" , "Yak" , "Move mandible about in informal chat" .)