A Dictionary of Dream Symbols

by Eric Ackroyd
(see also Goblin, Spirits)

In folklore, gnomes are subterranean spirits who guard the earth’s treasures. In psychological terms they symbolize whatever is keeping you from your task of entering and getting to know your unconscious (= earth) so as to discover your inner, true self (= treasure).

The Big Dictionary of Dreams

by Martha Clarke
The encounter with a group of gnomes in a forest symbolizes the search for very different values and principles than those conforming your current reality. At this time, you are pursuing a utopia. The latter could be materialized if you are willing to get carried away by imagination.

Ariadne's Book of Dream

by Ariadne Green
An immortal character whose wisdom comes from age may appear in a dream to escort you on an adventure to discover lost continents or a forgotten time within your own history.