Arsenal are currently eight points ahead Manchester City at the top of the Premier League and are just nine games away from a first title since 2004.
The Gunners head to Anfield next Sunday, where they have not won since a 2-0 win in September 2012, which manager Michael Arteta played in.
Xhaka believes Arsenal now have what it takes to end that winless run, but he insists they won’t take anything for granted.
Liverpool have struggled this season and are currently eighth in the League following a 4-1 defeat to Manchester City on Saturday.
“It doesn’t matter how their season goes, they are always a dangerous team and at Anfield a very difficult team to play,” said Xhaka.
Granit Xhaka scored against Leeds on Saturday.
/ AFP via Getty Images“But we have enough confidence to win there as well. This is what we will try to do. That’s why we’re going there, so let’s see if we can get the three points back.
“To be honest, we look at ourselves [and not Manchester City]. We have everything in hand – nine games to go.
“Let’s say five points over City – or eight now that we’ve played one game more. What matters most is what happens in the team, not what anyone else does.”
Arsenal’s eight-point lead was briefly cut to five on Saturday after City beat Liverpool. However, the Gunners responded quickly with a 4-1 victory of their own over Leeds.
“It wasn’t always easy or open,” Xhaka said. “Teams are now playing very deep against us, waiting for our mistakes and counter-attacks.
“We know that when we score the first goal maybe they should open up the game a bit more and in the second half they did. We had to fight more in the first half.”
Gabriel Jesus was the hero against Leeds, scoring twice to score his first goals since October. The striker had been out with a knee injury for more than three months, but Xhaka has insisted he remained an important part of the squad by making an impact off the field.
“If you are injured, it does not mean that you have nothing to do with the team,” said Xhaka.
“It was the same with myself when I had my injury. From the outside you see a different picture than from within the team.
“You know exactly when and how to help and Gabi has been excellent because it’s not always easy for himself to be out for three or four months, but he was very positive in the dressing room and that’s what we need.”