In a medium saucepan, combine the ketchup, peach preserves, bourbon, apple cider vinegar, Worcestershire sauce, honey, and Dijon mustard. Stir well to combine.
Heat the saucepan over medium heat, stirring occasionally, until the mixture begins to simmer.
Reduce the heat to low and add the garlic powder, onion powder, salt, and pepper. Stir to combine and let the sauce simmer for 10-15 minutes until it thickens.
Once the sauce has thickened, remove it from the heat and let it cool.
Transfer the sauce to a blender and blend until it's smooth. If you prefer a chunkier sauce, skip this step.
Store the sauce in an airtight container in the refrigerator until ready to use.