Gordy will be at #11 on the Copperlane District map. He would like you to procure a March Steel Dagger for him, and indicates that a merchant named Igrun may be willing to sell one. He promises to reveal the location of a secret stash in return. Clever, Passionate and Rational replies are possible early the conversation.
There are two ways to complete this task early that involve tricking him into revealing the secret location, but without having to find the Dagger for him. One way requires a Resolve check of 12 that also earns Deceptive disposition. You can follow it up a with a Cruel dialogue option afterwards.
The other is to make a Might check of 12 that earns Aggressive disposition and minor negative reputation with Defiance Bay. You can follow that up with another Might check of 12 that earns Cruel disposition and moderate negative reputation with Defiance Bay.
If you're willing to get the Dagger for Gordy, the merchant named Igrun will be at #28. If you can make an Intelligence check of 12 after asking about the Dagger then Benevolent, Clever and Diplomatic replies become availability. The Clever reply will convince Igrun to give you a 5% discount on his wares.
In any event, Igrun will indicate that he sold the Dagger to a band of mercenaries currently at the Goose and Fox, the entrance to which is at #4.
The stairs up to the second floor of the Good and Fox are at #5 on the map of the main floor.
Now you can bring the March Spring Dagger to Gordy for an xp reward. Note that later on the town crier will announce that a young boy lost several fingers playing around with a dagger. However, if your main character chooses a dialogue option that requires a Survival check of 4 at the time of giving the dagger to Gordy, that mishap will be averted.
If you come back later on, Gordy's father, Hamor, will be accosting his son over the purported theft of the dagger. Your dialogue options have no long-term consquences for the game itself, but Aggressive, Benevolent, Diplomatic and Deceptive replies are possible.
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"I've had this little problem ever since I was a wee gnome. When it gets dark, everybody glows red. Frightens a child something fierce..." -Jan Jansen, Baldur's Gate II