Rothgar told you about the old Dourhand city to the west of Noglond, but does not know why the Dourhands would bring the stolen gold into it -- the city was overrun by goblins two years earlier.
'The thrushes saw the Dourhands carrying this stolen gold into the old Dourhand city to the west? That is very peculiar. You see, it has been infested with goblins for the past two years!
'I don't know why the Dourhands would bring the gold into a goblin-held city, even if they once called it home. Most peculiar. It reminds me of the tale of...
'I am sorry. You want to head west to the old Dourhand city and search it for the stolen Longbeard gold, I expect. It won't be easy, but I'll be waiting to hear of your exploits! Head west of Noglond and look for the stairs carved into the mountainside... and watch out for the goblins!'
The old Dourhand city lies to the west of Noglond, up a flight of steps carved into the mountains.
Rothgar has confirmed the existence of an old stronghold of the Dourhands, now goblin-infested, near Noglond. If the thrushes are correct, the Dourhands brought the stolen gold into the city.
Rothgar is at Noglond, east of the old Dourhand city, along the road that runs through the Vale of Thráin.
You have recovered the stolen gold and should return it to Rothgar for delivery, as Dwalin instructed.