A first-half goal from Steven Davis gave Rangers the victory and top spot in the SPL table.

Walter Smith's side went into the clash with their bitter rivals knowing that victory would take them two points clear at the summit.

And Davis struck eight minutes before the interval for the goal that eventually separated the two sides.

Kenny Miller did superbly to find space on the left and cut back a perfect cross that found Davis unmarked six yards out with Celtic goalkeeper Artur Boruc out of position. He tapped home to send the home fans into ecstasy.

Davis then produced heroics at the other end to clear a Jan Vennegoor of Hesselink header off his own line.

The second half saw Kris Boyd go clean through before his shot was well saved by Boruc.

Celtic meanwhile brought on Aiden McGeady in a bid to fashion an equaliser, but despite all their possession Rangers held out for three priceless points.

Kevin Kyle kept Falkirk bottom of the table as he scored Kilmarnock's equaliser to secure a 1-1 draw.

Falkirk were outplayed in the first half but Darren Barr headed them in front 11 minutes after the break.

The visitors looked set to climb off the foot of the table but goalkeeper Dani Mallo let Kyle's 20-yard strike squirm through his hands midway through the second half.

St Mirren stayed second bottom of the standings after losing 3-1 at home to Motherwell.

Teenager Jamie Murphy opened the scoring for the visitors with a 13th-minute header and David Clarkson then contributed a goal in each half for the visitors.

Substitute Stephen O'Donnell, making his comeback from injury, sparked a late St Mirren rally when he scored with a fine volley, but it proved a mere consolation as the Paisley side remained mired in the relegation fight.