Posting some pictures of the tree, larvae found at the soil level in the goo and the a hole oozing a week after I cleaned it up.

Here is a link that might be useful: Pictures of peach and larvae found at dirt

midlin:

That's most certainly peach borer. There is plenty of info on the web about moth balls or spraying for control. You can also try to dig out larvae now with a wire.

This time of year I find more out on the edge of the bark than inside it. Usually when I wipe away the goo I find them. I you don't have access to something strong enough to kill them (Lorsban is what I count on) you'd best scrape away the loose bark and try to kill them with a stiff wire if they aren't in the exterior. Then you can place mothballs near lowest part of injuries and cover with dirt.

I had the same problem with my peach and nectarine. I used a wire then filled the hole with very strong borer spray. I did this twice. What is so amazing though, is that even though I know the 'borers' could not live through my 'treatment', after it rains, the wounds still ooze gobs of 'jello'. I am hoping these wounds heal a bit better before winter sets in. My borers were not at the base of my tree, but in the crotches of trunk and branches.

Thanks Fruitnut Harvestman and MrsG. I will be hunting with a wire tomorrow. Does anyone think mixing DE 50% into the few inches of soil around the tree would help to kill the larvae around the roots?

Is it worth a try to have a solid mound of diatomaceous earth inside a plastic tree guard (with a plastic cup top to keep the rain out) a foot above to a few inches below soil to prevent the borers next year? Unsure if the bark would be all right if the DE could be kept dry.
I had painted these trees with diluted white latex mixed with DE in August, but it was probably too late for July egg laying.

Dear Midlin, I will purchase tree syringes to fill with pyrethrin to kill my borers next spring. Tidy.