We report the detection of continuous positional and polarization changes of the compact source SgrA* in high states ('flares') of its variable near- infrared emission with the near-infrared GRAVITY-Very Large Telescope Interferometer (VLTI) beam-combining instrument. In three prominent bright flares, the position centroids exhibit clockwise looped motion on the sky, on scales of typically 150 micro-arcseconds over a few tens of minutes, corresponding to about 30% the speed of light. At the same time, the flares exhibit continuous rotation of the polarization angle, with about the same 45(+/-15)-minute period as that of the centroid motions. Modelling with relativistic ray tracing shows that these findings are all consistent with a near face-on, circular orbit of a compact polarized 'hot spot' of infrared synchrotron emission at approximately six to ten times the gravitational radius of a black hole of 4 million solar masses. This corresponds to the region just outside the innermost, stable, prograde circular orbit (ISCO) of a Schwarzschild-Kerr black hole, or near the retrograde ISCO of a highly spun-up Kerr hole. The polarization signature is consistent with orbital motion in a strong poloidal magnetic field.