It's not true though (and no evidence that such a gate existed with that name).
It's more likely exaggeration referring to actual camel (the large animal of the area) and the eye of a needle (an example of the smallest hole one would be readily familiar with at the time).
If it was reffering to a named place, the very capable in both Jewish and Greek authors of the New Testament wouldn't have translated it as "τρυπήματος ῥαφίδος" (needle's opening) or "τρυμαλιᾶς ῥαφίδος" (needle's hole), as opposed to something like "narrow gate" or similar that would convey to people unfamiliar with Jerusalem the point.
