Leaving the peels on the peaches helps them retain their shape and texture and cuts down on preparation time. Wash the fuzz off the peel before using.
Combine first 8 ingredients in a large saucepan. Bring to a boil over medium-high heat; cook 10 minutes or until wine mixture is reduced to 1 1/2 cups. Cool to room temperature.
Strain wine mixture through a sieve over a bowl, and discard solids. Combine wine mixture and peaches in a medium bowl; cover and chill 4 hours, stirring occasionally.