In the streets of Medieval England, find an over-wooly sheep, and a armorer looking for a new assistant.
Use magic to telekinectially lift the shears off the table (what kind of assistant was this guy expecting?).
Maneuver them around the sheep until all its fleece has fallen off. You don't have to be precise,just keep waving them back and forth over the beast.
When that's done, use your magic again to levitate the wool into the fire.
You can also ride the sheep now.
Use a laser on the gold wall left of the forge, and again TK the gold into the flames.
Lastly (levitation wise, anyway), smash the gem-crate to the right of the forge, and magic the gems themselves into the fire.
Even more lastly, charge up the forge generator itself.
This completes the task and yields a gold brick.