"Eu gosto do relógio nessa cor."
Translation:I like the watch in that color.
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Yes, if the watch is distant.
Or if you are pointing to a distant color, like the color the wall, or the color of a watch that is over the shelf, not in your hand, nor in sellers hand.
When you say "nessa", you are probably talking about the color of the clock itself (but may be some other near color) . But when you say "naquela", then it's the color of another thing, that may be a clock as well, but not the same clock itself.