Protests were also taking place in the West Bank and Jerusalem, where the United States is opening its new embassy. "These sorts of actions will increase tension in the region and the world".
The move also sparked mass outrage across the Arab world, resulting in the escalation of the Israeli-Palestinian conflict.
The victims were shot dead by Israeli forces, the Gaza Health Ministry said, as violent clashes broke out in five spots along the border. Black smoke from tyres burned by demonstrators rose into the air at the border. A general strike was observed, with shops and markets closed.
But Guatemala, which received support from Israel in its counter-insurgency campaigns in the 1980s, plans to open an embassy in Jerusalem on Wednesday.
In Jerusalem, top Trump administration officials attended events linked to the inauguration of the embassy later Monday. The death toll has drawn global criticism.
Jeremy Ben-Ami, president of J Street, a liberal pro-Israel group in the USA, expressed concern that the embassy move would backfire.
The Trump administration has almost completed a long-awaited Israeli-Palestinian peace plan but is still undecided on how and when to roll it out, given Palestinians' outrage over the embassy move and their contention that Washington can no longer be an honest broker. Erekat says Washington "is no longer a partner".
President Donald Trump announced his decision in December to recognize Jerusalem as Israel's capital, triggering a joyous reaction from Israeli Prime Minister Benjamin Netanyahu's nationalist government.
Trump and Kim to meet in Singapore on June 12
Singapore is gearing up to host the highly-anticipated summit between President Trump and North Korean leader Kim Jong Un . Administration officials consider the release an encouraging signal ahead of next month's summit.
Top cop Himanshu Roy shoots self
The primary investigations revealed that Roy was in his bedroom and his wife in another room when he shot himself. In his suicide note, the top cop said he took the step "out of frustration" due to his illness.
Rand Paul says Haspel's lack of candor is disqualifying
Haspel - a 33-year veteran of the agency - faces what will likely be a close confirmation vote in the full Senate. John McCain , who was tortured during almost six years of captivity during Vietnam, opposes Haspel's nomination .
A total of 86 foreign ambassadors in Israel were invited to the opening ceremony of the USA embassy in Jerusalem on Monday, while 40 of them accepted the invitation.
Israel applauded Trump's moves but some other USA allies strongly argued against it, warning that it could provoke violence and further destabilize the volatile Middle East. He says Japan will watch the development with great interest.
"I think the leadership is different from the people", Buttu said, speaking to CNN from Ramallah.
It follows Trump's announcement last week that the United States is withdrawing from the Iran nuclear deal and Israeli strikes two days later on dozens of Iranian targets in Syria.
The relocation of the embassy from Tel Aviv has infuriated the Palestinians, who seek east Jerusalem as a future capital.
The Trump Administration is set to move the United States embassy in Israel to Jerusalem Monday, formally breaking from decades of established American policy and global practice in a move that United States officials say will create greater regional stability.
Jason Greenblatt writes on Twitter that "the long-overdue step of moving our Embassy is not a departure from our strong commitment to facilitate a lasting peace deal".
Israel immediately annexed east Jerusalem - home to the city's most sensitive Jewish, Muslim and Christian holy sites - in a move that has not received global recognition.
"Palestinians, who consider Jerusalem their capital, have since kicked against the move, going as far as organizing a six-week protest tagged Great March of Return".
Violence is expected to break out in Gaza Strip, the blockade between Israel and Palestine, later today ahead of the inauguration ceremony. Revelers sang, danced and waved Israeli flags.
Forty-two Palestinians have been killed and over 1,800 have been wounded by Israeli fire since the weekly protests began on March 30.