Gnomes tend to adopt the religion of their most potentially dangerous neighbors. According to their principles, it's harder for an enemy people to wipe them out if they're killing priests of their own gods. Currently, most gnomes are followers of the dwarvish ancestor cult, and cheerfully follow along the ritual prescriptions of that grim faith. They worship a theoretical First Mother and First Father of the gnomes in fashion similar to the dwarves, and their devotees win the same powers as the dwarvish priests. Others who've occasioned to live near human lands share human creeds.
If gnomes have a native religion of their own, it is a strictly mystical one, seeking perfection of the self within the context of society. These mystics strive to bring forth the finest and best characteristics they possess through meditation and self-testing. By perfecting the self, they feel that they will be able to perfectly direct the wills of those around them, adjusting their goals with light and delicate touches to ones more pleasing to the adept.
These adepts tend to be highly respected amongst gnomish families, but this respect hinges on their accomplishments. Without due demonstration of their usefulness, such reverence as they obtain rapidly wanes.