When atoms form molecules they sometimes form spots that are positively or negatively charged and when you have a thing that can line up these spots and keep them lined up you end up with a magnet. The combined electric charges form a magnetic field, an area where those charges have influence.
Now, when some metals come in contact with a magnetic field the like charges are repelled and the opposite charges are attracted and because magnetic fields are stronger when closer the net result is a pull. We call this ferromagnetism because ferro- means iron and iron is the first metal we saw do this.
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