This is the Kidron Valley. It is located between the city of Jerusalem and the Mount of Olives.
I was fascinated with the incredibly hilly and rocky soil in Israel in general and Jerusalem was no exception. You also have a little idea of the distance between the Mount of Olives, where Jesus and the disciples frequently retreated to and to Jerusalem proper. The gold dome in the foreground marks the location of the temple. This was the center of Jewish religion during Jesus’ time and where they visited frequently. You get an idea of the distance of the walk, while walking down and up hills over really rocky soil.
They are hard to make out, but all the stoney structures are tombs. The valley was a popular area to bury the dead perhaps because of the legend that said this was where Messiah would appear and judge in the final judgement. Legend has it that the people buried here would be at the head of the line for judgement.