How do I prevent a Gateway Timeout with FastCGI on Nginx

I am running Django, FastCGI, and Nginx. I am creating an api of sorts that where someone can send some data via XML which I will process and then return some status codes for each node that was sent over. The problem is that Nginx will throw a 504 Gateway Time-out if I take too long to process the XML -- I think longer than 60 seconds. So I would like to set up Nginx so that if any requests matching the location /api will not time out for 120 seconds. What setting will accomplish that. What I have so far is: # Handles all api calls location ^~ /api/ { proxy_read_timeout 120; proxy_connect_timeout 120; fastcgi_pass 127.0.0.1:8080; } Edit: What I have is not working :)