Can Monero be traced by police?

Could you please clarify if Monero transactions are susceptible to police tracing? Given its reputation for anonymity and privacy-oriented features, I'm curious to know if its transactions can still be traced by law enforcement agencies despite its enhanced security measures. Would the use of Monero pose a significant challenge for police investigations seeking to identify and prosecute criminal activities? It would be helpful to have a detailed explanation of the technicalities involved in this matter. Thank you for your assistance.