Combine sugar, vinegar, and spices in a large Dutch oven; bring to a boil. Add peaches; cover and simmer 8 minutes or until slightly tender.

Remove peaches from syrup using a slotted spoon, and pack into hot sterilized jars, leaving 1/2-inch head space. Cover peaches with boiling syrup, leaving 1/2-inch head space. Adjust lids; process pints for 20 minutes and quarts for 25 minutes in boiling-water bath.