Each new location with chests usually requires you to win three battles to proceed. However, it's best to talk to the bartender and the fortune teller, as we never know which quests you've already completed.
Ye but no battles are even happening, it just keeps finding soul gems. And then the bartender just tells me to go there.
In fact no battles will trigger anywhere I go
Are you sure you are using a copy of the game downloaded from this website?