The Hoops dominated possession and hit the bar three times, but it took a single goal from Olivier Ntcham – the only tally of the game – to ensure the points stayed at Parkhead.
The Liverpool legend, however, believes the strike should not have stood as he feels Ryan Jack was fouled in the build up to the effort.
“The frustrating thing for me is that we’ve done, I believe, by a refereeing decision,” he told RangersTV . “For me, it was a blatant foul and if we get that we maybe come away with a point.
“Which given where we’ve come from, would have been a satisfactory result.
“I was standing next to the fourth official and he was shouting: ‘Foul, foul, foul’ down his microphone, so I assumed it would be given.
“I’m disappointed with the decision of the referee, but that’s life, we have to get on with it.”
The manager was pleased with the way his side grew into the game and felt they were looking good when the goal was conceded.
“In the second half we matched then, and if not edged it a bit,” he said. “We were the team looking for the equaliser.”
Despite the setback, Gerrard still believes the Ibrox club are moving in the right direction and vowed that his team will be all the more competitive when they meet Celtic again on December 29.
“In the previous three-four derbies I’ve watched, it’s been a bit of a mismatch. Celtic have blown Rangers away,” he said.
“We’ll improve, we’ll keep working hard, we’ll keep growing. Next time this fixture comes round, we’ll be better.
“This team have given me everything. I’ve asked major questions of them, and they’ve answered them all. It’s a setback today. We have to bottle this pain and try and use it in our favour after the international break.”
The 1-0 loss at Celtic Park, was the first time Gerrard has tasted defeat in the Rangers dugout in his 13 matches in charge.