Look for goats in rocky, mountainous areas and near villages. Goats are easily startled and quite nimble, but they usually appear in groups, so picking them off shouldn't be too difficult. Goat skins are worth $5 each and can be used to craft the Simple Weapon Holster (1 hide), Simple Grenade Pouch (2 hides), Simple Munitions Pouch (2 hides) and the Simple Arrow Quiver (1 hide).