The lack of symmetry between electric and magnetic charges, a fundamental consequence of the small value of the fine-structure constant, is directly related to the weakness of magnetic effects in optical materials. Properly tailored plasmonic nanoclusters have been proposed recently to induce artificial optical magnetism based on the principle that magnetic effects are indistinguishable from specific forms of spatial dispersion of permittivity at optical frequencies. In a different context, plasmonic Fano resonances have generated a great deal of interest, particularly for use in sensing applications that benefit from sharp spectral features and extreme field localization. In the absence of natural magnetism, optical Fano resonances have so far been based on purely electric effects. In this Letter, we demonstrate that a subwavelength plasmonic metamolecule consisting of four closely spaced gold nanoparticles supports a strong magnetic response coupled to a broad electric resonance. Small structural asymmetries in the assembled nanoring enable the interaction between electric and magnetic modes, leading to the first observation of a magnetic-based Fano scattering resonance at optical frequencies. Our findings are supported by excellent agreement with simulations and analytical calculations, and represent an important step towards the quest for artificial magnetism and negative refractive index metamaterials at optical frequencies.