Young Israeli girl shot

Palestinian militants had thrown grenades at an Israeli military post

JERUSALEM (CNN) -- A young Israeli girl was shot by Palestinian gunmen Sunday night as a bus filled with Israeli settlers came under fire, an Israeli army spokesman said.

The shooting occurred near the Israeli settlement of Shilo which is located north the Palestinian West Bank town of Ramallah.

The army spokesman said the girl was in moderate condition.

Meanwhile, hundreds of Palestinians vowed revenge at the funeral of an 11-year-old Palestinian boy who was shot dead Saturday in southern Gaza.

Palestinians have said Israeli soldiers fired on the boy and at least two other children while they played.

The Israeli army could not confirm the report of the child's death but it said soldiers did fire at Palestinian militants who had been throwing grenades at a military post. The Palestinian Red Crescent said the child was killed at Rafah.

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In the West Bank, Palestinians say Israeli soldiers sprayed cars and houses with gunfire earlier in the weekend. Israel says it was reacting to Palestinian rifle fire on a Jewish settlement.

The violence is undermining a cease-fire brokered by the U.S. last month, which is officially still in place despite Israeli and Palestinian security officials failing to agree on a timeline to implement the recommendations of the U.S.-led commission to end nearly 10 months of fighting.

Palestinian eyewitnesses told the Associated Press that the children injured Saturday were shot by Israeli soldiers from a guard tower some 350 yards from where they had been playing.

The Israeli army spokesman said Palestinian militants had been shooting and throwing hand grenades and firebombs towards the military post throughout the day from inside the Raffah refugee camp, prompting the army to return fire.

In a written statement, the army said it tried to disperse the dozens of protesters with rubber bullets but also fired live ammunition in an open area that was far from the crowd.