The Israeli military said 10,000 Gazans were participating in what it described as "riots" and that some had tried to breach the border into Israel.
"The nature of these injuries shows that Israeli soldiers are using high-velocity military weapons created to cause maximum harm to Palestinian protesters that do not pose imminent threat to them", an Amnesty report noted. 175 of the wounded Palestinians were injured in Northern Gaza, 251 in Gaza city area, 200 in Central Gaza, 146 in Khan Younis and 183 in Rafah.
In what the army said was a direct response, Israeli warplanes late Friday attacked "six military targets belonging to the Hamas terror organisation's naval force in the Gaza Strip".
Israeli Defense Minister Avigdor Lieberman had urged Egypt to reject the request to help repatriate the body and put pressure on Hamas to return two captive Israeli civilians and the remains of two Israeli soldiers the militant group is believed to be holding.
"The Israeli Occupation deployed its Army, including snipers, to attack peaceful Palestinian demonstrators, including unarmed women, men and children".
The protests come at a time of growing frustration for Palestinians as prospects for an independent Palestinian state look poor.
Israeli forces have killed 42 Palestinians since Gaza residents began staging protests along the border fence on March 30.
Earlier on Friday, UN High Commissioner for Human Rights Zeid Ra'ad al-Hussein condemned Israel's use of "excessive force" against Palestinian protesters, saying its security forces must be held to account.
Baloons released to honor Alfie Evans
Pope Francis met with Evans and appealed for the wishes of the boy's parents to be heeded, saying only God can decide who dies. During the legal dispute, the couple had criticized the hospital fiercely, and Thomas Evans described his son as a "prisoner".
Lt. Col. Jonathan Conricus, a military spokesman, said the event was unlike anything Israel has seen over the past month.
US President Donald Trump, who tore up decades of policy by recognising Jerusalem as Israel's capital, said Friday he "may go" to the city for the embassy opening.
Zeid Ra'ad Al Hussein, the United Nations high commissioner for human rights, called the loss of life deplorable.
Israel's use of live fire has drawn global criticism.
Owaida is the second teenager killed by Israeli fire recently, following the death of Mohhamed Ayoush, 15, last week.
Among the wounded, 178 were shot with live ammunition on Friday while others sustained injuries from rubber-coated steel rounds, or required treatment for tear gas exposure.
Protesters hurled stones and rolled burning tyres towards the fence, and some attached cans of burning petrol to kites and flew them into Israeli territory.
Rights groups have said such open-fire rules are unlawful because they allow soldiers to use potentially lethal force in situations where their lives are not in danger. Tires were set ablaze, filling the air with thick smoke. The increasing desperation of broad layers of Gaza youth is a product of both the unbearable conditions facing the more than 1.9 million Palestinians blockaded in what is the largest open-air prison on earth, and the lack of any viable perspective provided by a supposed "two-state solution".