In Варвар (Varik), there's a different story. In the Alliance, we have humans, high elves, and gnomes. High elves have much less connection to nature than wood elves, whose role in Varik is played by night elves. Gnomes still live off the mountains. But the mountains cannot provide sustenance. You can't live on metals and precious stones. Therefore, gnomes obtain their livelihood through trade, as in all normal fantasy settings. And they trade in the products of blacksmiths and jewelers. High elves and humans are their main (and perhaps only) trading partners. They sell what the mountains give them, and they buy what the mountains cannot give them. In fact, gnomes acquired their normal appearance only in the fourth game, when Ufretin separated them from the elves.
In Асхан (Ashan), the gnomes are unique. On the one hand, they live in complete isolation, but on the other hand, the situation is such that the gnomes would simply starve. Therefore, there are Clans that engage in trade (mainly with the Holy Empire). Wulfsten was the head of one of these Clans.