How untraceable is Monero?

Monero is often touted as a highly untraceable cryptocurrency, but just how untraceable is it really? While Monero uses advanced privacy features like ring signatures and stealth addresses to obscure transaction details, is it truly impossible for authorities or other parties to trace Monero transactions? Are there any known cases of Monero transactions being successfully traced, or are there still vulnerabilities in its privacy mechanisms that could potentially be exploited? As a cryptocurrency enthusiast or investor, it's important to understand the true level of privacy and anonymity that Monero offers before making any decisions.