
Guru Gobind Singh, the tenth Sikh Guru, gave Sikhs the kara, a bangle. By wearing the kara on the wrist, he gave Sikhs a sign of slavery and freedom.
He made the Sikhs a slave to God so that they can be free of everything. The kara is a sign that Sikhs bow only to God and serve only the Infinite. Sikhs are never slaves to any man.
Guru Gobind Singh made the kara of steel to remind Sikhs that their steel will be tested, and yet their commitment shall never falter. He made it round to symbolize Oneness with the Infinite or Akal Purkh, the boundless, undying, Almighty God.
The kara is made of steel to remind Sikhs that in the face of challenge they should be as strong as steel. Also, Sikhs believe that by placing steel in the electromagnetic field, it serves to balance the ions and keep them facing in the same direction, giving extra strength.
~Resource: Living Reality (1994) by Bibiji Inderjit Kaur Khalsa.