Gerrard had enjoyed a 12 match unbeaten run at the start of his managerial career with Rangers in all competitions.
But the ex-Liverpool star was unable to stop his men slipping to defeat against Celtic in a frantic match high on passion but short on quality.
Oliver Ntcham's 62nd minute strike was enough to settle the game and see Brendan Rodgers come out on top of his first duel with old captain Gerrard.
And Rangers keeper Allan McGregor was fortunate to escape being sent off when he appeared to kick out at Celtic defender Kristoffer Ajer midway through the first half.
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