Gnome #29: You will find this Gnome on the back of the house to the left of the pub. The house is called The Doghouse and is owned by Gemma the Housewife.
You will just walk through the house and straight ahead will be the back door. Then turn around and you will see the Gnome on the back of the house on the wall.
Gnome #30: You will find this Gnome in the alley near the stairs leading up onto the city wall. It is near the entrance from Bowerstone Industrial. It is in the corner just slightly up the wall.
Gnome #31: You will find this Gnome just after finding Gnome #30, head up the stairs that are located right by that Gnome. Then walk along the city wall until you reach the circular lookout then turn around to see it above on the wall.
Gnome #32: You will find this Gnome above the cask inside of the kitchen in the castle. It will be between the 2 doors in this room in the corner.
Gnome #33: You will find this Gnome on top of a birdbath in the corner of the garden. It will be right near the entrance to the Catacombs. You can get to the garden by going through the castle and then heading through the kitchen back door.
Gnome #34 (The Catacombs): You will find this Gnome at the end of the path that you descend down at the beginning where you entered the Catacombs. Then turn to the right to find the Gnome on the left of the column.
Gnome #35: You will find this Gnome on the right side of the House of Stains near the main entrance to Bowerstone Old Quarter and also right near the pig statue in the center of the road. It will be holding on to the left chimney stack almost halfway up it.
Gnome #36: You will find this Gnome up the hill just past the shopping area that is located by the bridge. When you reach the end of the road, head left and then take a right into the grassy area. The gnome will be start ahead on the right window of the building.
This area might be a little different depending on how much you have progressed in the game or if this area has been destroyed. You can still obtain even if the area looks different.
Gnome #37: You will find this Gnome on top of the wooden supports outside of the Silverpines Mine. The mine is located in the settlement located that has a large tree at the center of it.
Gnome #38: You will find this Gnome on a wooden tower at the area above the mine. You will need to head towards the cemetery and go past it to find another path leading to the tower.