Spurs have been in good form in recent weeks and kept their bid for a top-four finish on track by beating Norwich City 3-0 at White Hart Lane on Boxing Day.
Mauricio Pochettino has been tasked with guiding Tottenham back into the Champions League after their fifth-placed finish in the top flight last season.
The north London side are currently fourth in the table and just six points behind surprise leaders Leicester City heading into Monday’s game.
However, Gray is expecting the Hornets to successfully frustrate Spurs and hold them to a draw.
Gray wrote on his blog for Paddy Power: “I really like Tottenham a lot this season. I thought they would go well if Harry Kane could reproduce what he did last year and he is doing. Pochettino now has a side that he likes, that’s not picking up any serious injuries so he’s getting to field the same team week after week.
“Saying that, there’s only three teams between these two sides and if Watford win this game they go level on points and could be, depending on other results, in a Champions League place. It’s extraordinary to see how far Watford have come this season but I do like what Spurs are doing.
“They’re difficult to beat away from home and I think we’re going to get a score draw in this game. My gut feeling is to go for a Tottenham win but we have to give Watford more credit.
“They’ll be up for this after drawing at Stamford Bridge and with two good teams in good form I’m going for the 1-1 draw.
Harry Kane has been in fine form for Spurs so far this season and took his Premier League tally for the current campaign to 11 by scoring twice against the Canaries on Saturday.
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