The metal rose to near the strongest level since 2008 as traders assessed the possible impact of a potential easing of geopolitical tensions over Ukraine.
While rising interest rates bring macroeconomic headwinds for equity valuations, gold has had a special relationship with interest rates in recent hikes.
It plans build a new state-of-the-art car factory close to its headquarters in Wolfsburg, Germany, to raise its game as electric-vehicle rival Tesla TSLA.O builds a plant near Berlin.