talk of the town vs gossip

talk of the town and gossip both are nouns.

Word	Noun	Adjective	Verb	Adverb
talk of the town	Yes	No	No	No
gossip	Yes	No	Yes	No

As nouns, gossip is a hypernym of talk of the town; that is, gossip is a word with a broader meaning than talk of the town:

Other hypernyms of talk of the town include comment, scuttlebutt.

talk of the town (noun)	gossip (noun)
idle gossip or rumor	light informal conversation for social occasions
	a report (often malicious) about the behavior of other people
	a person given to gossiping and divulging personal information about others

talk of the town (verb)	gossip (verb)
	wag one's tongue; speak about others and reveal secrets or intimacies
	talk socially without exchanging too much information