Of all bit-operations XOR has the best bit shuffling properties.
This truth-table explains why:
A B AND
0 0 0
0 1 0
1 0 0
1 1 1
A B OR
0 0 0
0 1 1
1 0 1
1 1 1
A B XOR
0 0 0
0 1 1
1 0 1
1 1 0
As you can see for AND and OR do a poor job at mixing bits.
OR will on average produce 3/4 one-bits. AND on the other hand will produce on average 3/4 null-bits. Only XOR has an even one-bit vs. null-bit distribution. That makes it so valuable for hash-code generation.
Remember that for a hash-code you want to use as much information of the key as possible and get a good distribution of hash-values. If you use AND or OR you'll get numbers that are biased towards either numbers with lots of zeros or numbers with lots of ones.
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