"These are 2 million Palestinians that live in the most crowded area in the world", Palestinian-American Anas Amireh said.
"Today is also a sad day, we've had scores of deaths on the Gaza border".
Top US officials have insisted they could still push forward the troubled peace process.
Both Israeli and Palestinian officials expect the death toll in Gaza to rise.
The UK, France, and Egypt have joined several other nations to express concerns over the incident and call for restraint. He was not present at the ceremony, but there was his daughter Ivanka trump and son-in-law Jared Kushner.
Protests are expected to resume today.
It also reiterated the UAE's unequivocal position towards the Palestinian Cause and its support for the Palestinian people in restoring their legitimate rights in line with worldwide legitimacy resolutions and the Arab Peace Initiative.
In doing so, the United States broke with most other governments that maintain diplomatic relations with Israel, which keep their embassies in Tel Aviv so as not to prejudge the outcome of moribund negotiations between the Israelis and the Palestinians on the future status of the holy city.
Representatives of the Israeli claim that it was used against protesters, the vast majority of cases, tear gas and rubber bullets.
Meanwhile, Israeli prime minister Benjamin Netanyaho has hailed Trump's decision a milestone.
"At the time when the United States announced they'd be moving their representation to Jerusalem we stated strongly that we did not think that would take us closer to peace, and it hasn't", Ms Ardern said.
The United Nations, the European Union and Arab leaders rejected the USA decision last December to recognize Jerusalem as Israel's capital.
The United States has officially relocated its embassy from Tel Aviv to Jerusalem, in a deeply controversial move that angered Palestinians and drew widespread worldwide condemnation, Al Jazeera reported.
The embassy celebration was widely considered a snub by the Palestinians. It was the expulsion or fleeing of hundreds of thousands of Palestinians from their homes during the 1948 war surrounding Israel's creation.
Israel has the right to defend its borders, and it has the might to do so successfully.
A United Nations official describes that land as "occupied territory", under two agreements: the Fourth Geneva Convention signed in 1949 and 1907's Hague Convention.
The spokesperson did not mention the opening of the controversial U.S. embassy in Jerusalem, which also took place on yesterday.