At least one Palestinian has been killed and hundreds injured as "Day of Rage" protests continue across the occupied West Bank, East Jerusalem and the Gaza Strip over the US decision to recognise Jerusalem as the capital of Israel.

A 30-year-old Palestinian man was killed by Israeli fire during protests in Gaza on Friday, Palestinian news agency WAFA reported, citing the Palestinian health ministry. 

According to WAFA, the health ministry retracted an earlier statement that a second man was killed. 

The Red Crescent also said on Friday that so far, they have attended to at least 217 injuries in the occupied West Bank and East Jerusalem, while in the Gaza Strip more than 20 people were treated for tear gas inhalation and rubber bullet wounds.

WAFA reported that about 50 those injuries had to be treated at a hospital. 

In and around the Old City of Jerusalem, protests began after noon prayers on Friday. 

Speaking in front of Damascus Gate in occupied East Jerusalem, Al Jazeera's Harry Fawcett said the protests have been mostly peaceful.

"Occupied East Jerusalem has been relatively peaceful in the past two days since this announcement from Trump," he said.

"Emotions are very high here and it doesn't take much to kick things off," he added. 

"The protests have largely been noisy and loud and occasionally Palestinian flags and banners [would be] unfurled at which Israeli security forces would move in and separate out some of those who they wanted to target."