It would be a concern to me...some sort of canker or borer. The large leaves are fast growing new water sprouts.

What should i do about the knot? I think it only oozes when there is too much water.

Not to sound disrepectful. I dont know anything about peach tree or growing peaches but your tree doesn't look healthy. I'm actually kinda grossed out by the pictures. It looks diseased.

A healthy tree or plant shouldn't be oozing anything. Maybe try googling for peach tree disease images and find one with a condition like yours to pinpoint the cause?

That is not because of a wet condition or rain. It looks like canker and possible borer damage. It can be either or both. You should clean off the jelly substance and look carefully for borer holes. Use wire to stab borers and clean them out. Spray with insecticide to prevent more borer attack.

if it is just canker, nothing much you can do. Keep the tree healthy. Healthy trees can recover from canker. If not healthy, canker can do damage that lead to the decline of your tree.

I will clean it and check for borers. The knot thing does look kind of gross but the tree is never the less growing vigorously! It flowered and had tons of fruit.

If I were you, I wound take out any ground cover near the tree. Your tree should not have to compete with nutrient. Make a ring of 3-4 ft in a diameter clear of weed/ground cover, You can mulch but not against the trunk of the tree.

Borers feed right above a soil line (and sometimes a bit lower a soil line)so clearing out those ground cover will help you spot any borer below ground, too. If you are in the west, you may also have twig borer and feed higher on a trunk of a tree and on branches.

I live in Arkansas. I have been meaning to clear those weeds away from the trunk.