How it works:
It is a two-step process, so you can confirm your purchase.
1) Click on the little icon of the present on the item you wish to gift
2) A screen pops up an you can choose which friend(s) to send it to.
3) Click the Buy button on the screen in step 2 to send the gift, and deduct the gold from your balance.
* Your friend can send you back a thank you gift, and they are Free!
Find the icon on items in your build menu, and on the newspaper!
This feature is slowly rolling out, so if you don't have this right away, you may be in the next batch to receive the update.