But Smith was quick to point out Rangers were trailing their bitter rivals by seven points this time last year in the title race - and ended up triumphing on the final day of the season.
"I don't think we are that far out in front in the league," said the Rangers boss.
"It's a good headline to say you are nine points in front but Celtic still have a game in hand so we would look at it as being six points in front.
"At this stage last season, Celtic were seven points in front of us so it doesn't mean much at this stage of the season.
"We have each other to play on two occasions, never mind the rest of the games. It's nice to be in that position but I don't think it means a great deal at this stage of the season."
However, Smith was keen to praise his players for their efforts in staying in pole position despite having plenty of obstacles to overcome so far.
He added: "Our players deserve a great deal of credit for the way they have handled the season.
"It's not easy when you're involved in Champions League games and you're not doing well, it's not easy to keep a level of consistency going.
"In December, we played exceptionally well but, unfortunately, we have had a whole list of injuries and suspensions and that has disrupted us a little, I don't think there is any doubt about that.
"Since the turn of the year, we haven't played in the manner that we did in December.
"There has been a bit of inconsistency in our team right from the very start of the season in terms of performance so any lead that we have in the championship at the moment is welcome.
"But it's welcome in the knowledge that we still have an awful lot to do this season."
Financial uncertainty also hangs over the club as they continue their search for a new owner, with Smith and his backroom staff now working without contracts.
But he insists his own lack of security is no excuse for youngsters John Fleck and Danny Wilson rejecting new deals, after last week accusing the 18-year-olds of putting cash before their careers.
He said: "I think when you are starting out in football, the only thing you should be concentrating on is actually playing football and getting the opportunity to do so.
"I don't think that whoever the manager is matters that much when you are 17 or 18. What matters is that you are applying yourself to what you want to do.
"A more experienced player can maybe consider a situation within a club but I don't think that matters to a younger player.
"The full concentration should just be on starting a career and laying a foundation for a good career. So I don't think anything which goes on around it should matter that much."
Rangers play host to Hamilton in their fourth round Scottish Cup replay tomorrow night, in what will be their third meeting with Accies in just over a week.
Smith said: "We are used to playing each other more often than most countries but three games in ten days is asking a bit much.
"I think we will be a bid fed up with each other by the time we finish the game."
Scottish Premier Winner 2009/10 Win Outright: Rangers 4/11