"A poor shady location" might be the root of your problem, Blondie. Where there's shade there are usually other trees close by, along with their roots which extend out beyond the reach of their branches quite often. So you peach tree is really struggling for both water and any nutrients against the competition of the other tree roots.
Also, fruit trees need full, all day sun to produce good sweet fruit and lots of it. I'd be just keeping that little tree alive until fall, scout out a new location for it and move it as soon as the leaves drop in the fall.
