In a small saucepan, combine wine, sugar, balsamic vinegar, citrus peel, and
spices. Bring to a boil and reduce to 3/4 cup, about 5 minutes. Remove from
heat. Strain and return liquid to pan; set aside.
In a small bowl, mix cornstarch with water.
Bring wine mixture back to a boil; whisk in cornstarch mixture, and simmer until thickened, about 2 minutes. Add cherries and simmer to heat through. Remove from heat; add almond extract. Serve warm.