Xanthus has been minor placed at both his starts and is one of 16 entries for Saturday's inaugural running of the rich juvenile race.
Dunn has high hopes for Xanthus who cost $44,000 at the Magic Millions March Sales last year.
“He is gradually improving. He beat older horses in a trial and then he has been solid at his two races starts,” Dunn said.
“Xanthus was never on the track in the Prelude. It can happen in small fields and he was the victim this time.
“If he gets a good barrier he should be able to sit just of the pace and finish strongly.”
Xanthus is one of seven entries for the race by rookie sire Better Than Ready.
Rival trainer Tony Gollan has nominated three youngsters for the race.
There are 21 entries for the $200,000 Aquis Jewel for three-year-olds withe a field limit of 16.
Group One winner Music Magnate from the Bjorn Baker stable heads the 18 nominations for the Listed Goldmarket Quality on the program.