Sporting contests do not come much more exhilarating, or unrelenting, than this. Under a beautiful summer sky in Glasgow's east end, the Old Firm derby crackled with an even greater intensity than usual. With five goals, six bookings and one sending off, this was unforgettable drama played out over 93 exhausting minutes. At the end of it all, Celtic had won the battle. Victory in the war now becomes a more realistic possibility.

It was amazing to think that, despite the significance of this occasion, the destination of the title remains far from conclusive. Gordon Strachan's side continue to rally impressively, but the league will now be decided by the ability of both teams to compete against the best of the rest. That Rangers are starting to flag is inevitable given the scale of their commitments. Yet there remains something redoubtable about Walter Smith's side.

Celtic were favourites yesterday and were also fancied in the previous meeting on April 16. They won both, but only by a single-goal margin, proof that this Rangers team will not go down without a fight.

The same can be said of Celtic. Since their 1-0 home defeat by Motherwell on April 5, Strachan's side have strung together four victories, including two Old Firm triumphs. Rangers have now not won a league game since the 1-0 win against Celtic at Ibrox on March 29.

It was a match expected to contain more needle than a sewing bee at the Singer factory. The fallout from the last encounter, which ended with an on-pitch rammy resulting in two red cards, and the subsequent war of words between Smith and Peter Lawwell, the Celtic chief executive, over fixture scheduling, set this up as a potential grudge match.

In the end, it transcended petty squabbles. This was gladiatorial combat at its finest, studded with memorable individual battles.

Daniel Cousin was preferred to Jean-Claude Darcheville in the lone striker's role for Rangers and led the line superbly in a fraught first half. Cousin v Gary Caldwell, particularly, was an embarrassingly one-sided affair during the first 45. The brawny Gabon striker reduced the Celtic defender to rubble time after time and even out-jumped his partner Stephen McManus for Rangers' second goal, an effort that catapulted the Ibrox team into the lead.

At one point, Neil Lennon, the Celtic coach, gesticulated wildly at Caldwell after the latter complained to referee Craig Thomson that he had been fouled by Cousin. He hadn't. Caldwell had simply been swatted aside by the striker after failing to impose himself physically once again. By half time, Smith's decision to start with Cousin had been thoroughly vindicated, but the striker's decisive contributions were largely restricted to the opening half.

Caldwell emerged after the interval a different player. Having failed to win a tackle or a header against Cousin in the first half, he proceeded to win everything, attacking the ball with conviction on the air and the ground. It was a remarkable turnaround.

The midfield battle was also a thrilling face-off. The controlled aggression which marked out Celtic's previous victory spilled over into crudity in the first half, with Paul Hartley booked for a scything challenge on Barry Ferguson and Barry Robson also picking up a yellow card. Rangers were simply quicker to the loose balls and more composed in possession.

Smith's side had been expected to mount their familiar rearguard action, but their midfield dominance was rewarded with a couple of goals and spells of enterprising football. Steven Davis, in particular, has emerged as a vital player for Rangers and bossed the opening exchanges, along with Ferguson.

Towards the end of the half, the Celtic midfield finally managed to assert themselves. Suddenly, Robson and Hartley started winning tackles that they had failed to previously and the home side enjoyed their best spell. Scott McDonald's excellent turn and shot, which deflected off Christian Dailly and into the net, came when the midfield balance had started to sway back towards Celtic.

Andreas Hinkel against Steven Whittaker was another fascinating duel. The German right-back has failed to fully convince since his singing in January and was given a torrid time by the former Hibernian full-back. Whittaker has grown in stature as a Rangers player in recent months and won the corner which led to their first goal from David Weir after ponderous defending from Hinkel.

Whittaker also picked the German's pocket and won the corner which led to Cousin's header for the second. Rangers' enforced re-shuffle after the break meant the Scot was required to fulfil more defensive duties, which eased the pressure on Hinkel. Whittaker's red card and one-match ban marks a real blow for Rangers. The jury remains out on Hinkel.

It was also a match laced with individual brilliance. McDonald has come in for justified criticism recently, but has responded in impressive fashion. Yesterday, he was at his clinical best. His first was a superb finish after Jan Vennegoor of Hesselink's flick-on and the second, which came with the aid of a deflection, was an opportunist strike. He also won the penalty for the third. After denying Celtic the league on the final day in 2005, McDonald may yet have another say in this season's dramatic denouement.