The Huber timepiece, which sold to an anonymous bidder, shows a swastika and has the initials AH engraved on it.
Jewish leaders condemned the auction ahead of the sale at Alexander Historical Auctions in Maryland.
However the auction house - which has sold Nazi memorabilia in the past - told German media its aim was to preserve history.
Adolf Hitler led Nazi Germany between 1933 and 1945, orchestrating the systematic murder of as many as 11 million people - six million of whom were killed because they were Jewish.
