Meatballs with Caramelized Onion Gravy

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INGREDIENTS
* 1 lb. ground beef
* 1 egg, lightly beaten
* 3/4 cup plain bread crumbs
* 1/2 cup milk
* 1 teaspoon garlic powder
* 1-1/2 teaspoons Italian seasoning, divided use
* 1/2 teaspoon black pepper, divided use
* 2 tablespoons olive oil
* 1 medium onion, halved and thinly sliced
* 2 tablespoons flour
* 2 (10.5-oz.) cans condensed beef broth
* salt, to taste
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