You said it yourself:
"And, the above configuration is expecting static content on the server where
NGinx is installed, when an request is made. But, I expect the static
content to be expected from remote server."
Nginx expets the file to be on the server, and that's how it works...
you need to either make them available in that server, in the path
you're specifing or just "drop" that location block in this server.
Are you're upstream server other nginx servers?
Melhores Cumprimentos // Best Regards
-----------------------------------------------
Miguel Clara
IT - Sys Admin & Developer
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