The Spanaird put pen to paper on a new four-and-a-half-year deal last month, but has seen his side claim just two wins from their last 11 Premier League games and Gracia himself admits that the contract won't provide him with any greater security unless their fortunes change on the pitch.
"In my opinion signing a new contract doesn't change my day or my mentality," gracia said ahead of Monday night's game against Everton at Goodison Park.
"You have to do the same every day with the same attitude, the same effort, and trying to do your best, and try to win the next game.
"That's the mentality I have with a new contract or without it, it doesn't change.
"In my opinion, the decision was because the owner, in this case, he thought it would be better for the club and for me to sign a new contract, but my commitment, my effort with the club doesn't change.
"I'm the same, knowing that as a coach it always depends on the results."
Monday night's game will see Gracia face off against former 'Hornets' boss Marco Silva, and the former Málaga manager is expecting a difficult game.
"I know it will be a tough game for both teams, I think, because if we play the same as we are doing, I'm sure it will be very demanding for them as well. And then, we'll see," he explained.
"If we are more efficient, if we are able to keep our defensive work, because they have an offensive style of play as well.
"And then we need to be ready to defend like we are doing, then to create the same chances we have in other game, and try to be more efficient."