The name ‘gnome’ was given by the medieval scholar paracelsus to describe the most important of the earth spirits. Goblins are a different, more grotesque, malicious variety of gnome. Visible to some who have developed clairvoyance, they are manifestations of nature’s power.
Psychological / emotional perspective: Gnomes are said to guard the treasures of the earth, living underground, whereas goblins have no real home. In dreams, therefore, the former will signify contentment but the latter stands for discontent.
Material aspects: When gnomes or goblins appear in dreams we are linking with the inherent powers of nature and perhaps the personalization of parts of our own psyche.
The hidden instinctive aspect is seen in the gnome and the well-buried malicious persona in the goblin. We perhaps should look at how our actions are affecting others.