Which after poking around i found the includes to be in /usr/local/include and the libs in /usr/local/lib. Although if /usr/local is systemwide, i am not sure why i would have to link them anyways. I tried it without and i get the same.
So my compile code i made to be:
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metulburr@ubuntu ~ $ gcc -I /usr/local/include -L /usr/local/lib test.c -o test
/tmp/cclERMOG.o: In function `main':
test.c:(.text+0x4c): undefined reference to `gdImageCreateTrueColor'
test.c:(.text+0x6b): undefined reference to `gdImageColorAllocate'
test.c:(.text+0x89): undefined reference to `gdImageColorAllocate'
test.c:(.text+0xa7): undefined reference to `gdImageColorAllocate'
test.c:(.text+0xc5): undefined reference to `gdImageColorAllocate'
test.c:(.text+0xf7): undefined reference to `gdImageFilledRectangle'
test.c:(.text+0x13f): undefined reference to `gdImageFilledRectangle'
test.c:(.text+0x16e): undefined reference to `gdImageFilledRectangle'
test.c:(.text+0x1b9): undefined reference to `gdImageFilledRectangle'
test.c:(.text+0x3f9): undefined reference to `gdImageFilledPolygon'
test.c:(.text+0x592): undefined reference to `gdImagePngEx'
test.c:(.text+0x5aa): undefined reference to `gdImageDestroy'
collect2: error: ld returned 1 exit status
metulburr@ubuntu ~ $